1. Date of incurred expense

If a custom-made item was ordered but not furnished to a beneficiary because the individual died or because the order was cancelled by the beneficiary or because the beneficiary's condition changed and the item was no longer medically necessary or appropriate reimbursement can be made based on the supplier's expenses. (See paragraph 2. below for determination of the amount of reasonable charge.) In such cases, the expense is considered incurred on the date the beneficiary died or the date the supplier learned of the cancellation or that the item was no longer medically necessary or appropriate for the beneficiary's condition. If the beneficiary died or the beneficiary's condition changed and the item was no longer medically necessary or appropriate, payment can be made on either an assigned or unassigned claim. If the order was cancelled by the beneficiary for any other reason payment can be made to the supplier only.