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(3) when applicable, for a covered item defined under a miscellaneous code for which CMS or the department has not issued a price, the rental rate will be 10 percent of the purchase invoice price plus 20 percent. (e) Rates established by the department under this section for a covered code for which CMS has not issued a rate may be published on the department’s Alaska Medicaid DMEPOS Interim Fee Schedule. (f) A provider enrolled under 7 AAC 105.210 as a durable medical equipment provider may submit claims for labor and repair parts for damaged durable medical equipment, medical supplies, prefabricated off-the-shelf orthotics, and related items and services under 7 AAC 120.200(a)(2) with the following limitations:

(1) the department will not pay more than the corresponding labor rate listed on the Alaska Medicaid DMEPOS Fee Schedule, Tables I-5 through I-9, adopted by reference in 7 AAC 160.900, for which CMS has issued a price for each 15 minutes of labor costs;

(2) the billing for a repair part must reflect a charge that complies with the applicable standards in 7 AAC 145.020 and this section;

(3) labor and repair parts for the item must be documented and the documentation must be submitted with each claim; documentation must include

(A) a statement signed by the recipient or the recipient’s authorized representative that describes the cause for and nature of the repair;

(B) a description of the item being repaired and its serial number, if available;

(C) the beginning and end dates of warranty coverage, if available;

(D) documentation for labor charges that includes the amount of time spent on the repair, rounded up to the nearest quarter hour, and the hourly rate charged for the repair; and

(E) an itemized list of parts used in the repair and associated costs;

(4) a provider may not submit a claim for labor and repair parts if the item is covered under a manufacturer’s or supplier’s warranty, or if the labor or parts are necessary to repair an item that needs repair because of a manufacturer’s defect;

(5) a provider may not submit a claim for labor and repair parts for a rented item; the provider shall ensure that a rented item functions as intended after the provider repairs or replaces the item. (g) A provider enrolled under 7 AAC 105.210 as a durable medical equipment provider may submit claims for the following incontinence supplies up to the allowed quantities listed on the Alaska Medicaid DMEPOS Fee Schedule, Tables I-5 through I-9, adopted by reference in 7 AAC 160.900, except that if a service authorization has been approved to exceed the allowed quantities based on medical necessity, payment will be determined on those supplies based on