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(c) The department will pay a provider by rental period. (d) The department will not pay a provider for a rental item that exceeds 13 months of continuous use or for which 100 percent of the purchase price has been paid, except for an item described in (a)(3) of this section. (e) A provider enrolled under 7 AAC 105.210 as a durable medical equipment provider may request payment for medically necessary used or refurbished durable medical equipment and may be reimbursed at a rate of not more than 75 percent of the rate for new equipment or services established in the Alaska Medicaid DMEPOS Fee Schedule, Tables I-5 through I-9, adopted by reference in 7 AAC 160.900, when a specific used rate is not listed, in accordance with 7 AAC 145.420, as long as the following criteria are met:

(1) the provider must have the recipient acknowledge in writing, and must maintain the written acknowledgment, that the recipient is receiving used equipment;

(2) the provider must bill with the appropriate modifier that distinguishes used or refurbished equipment from new equipment;

(3) the provider must submit and maintain the equipment’s serial number;

(4) the used or refurbished equipment provided must be clean and sanitized; and

(5) the used or refurbished equipment provided as rental equipment must

(A) meet the current medical needs of the recipient;

(B) be without defect;

(C) comply with the manufacturer’s suggested specifications for a newly purchased piece of equipment; and

(D) be able to withstand at least three years of use; if the equipment supplied does not meet current replacement standards of three years of use and the item needs to be replaced before the standard replacement limit has been met, the provider must replace the item with a new or used piece of equipment at no charge to the department or the recipient. (f) A provider enrolled under 7 AAC 105.210 as a durable medical equipment provider is not obligated to dispense used equipment. However, if a provider dispenses used equipment, the provider may not submit a claim representing that new equipment was dispensed. Otherwise, the department may seek recovery under 7 AAC 105.260 of payment for those items and impose sanctions under 7 AAC 105.400 — 7 AAC 105.490. (g) A provider enrolled under 7 AAC 105.210 as a durable medical equipment provider may not request payment for equipment, options, supplies, and accessories that are considered included in the monthly rental payment. (h) A provider enrolled under 7 AAC 105.210 as a durable medical equipment provider may not request payment for equipment, options, supplies, and accessories that are still considered to