DME Billing Services

HCPCS Level II coding, certificates of medical necessity, rental vs purchase, Medicare competitive bidding. DME compliance managed.

AAPC Certified
HIPAA Compliant
All 50 States
Starting at 2.49%
HIPAA Compliant
AAPC Certified
4.9/5 Rating
300+ Practices
Last reviewed: May 2026Reviewed by the Go Medical Billing Editorial TeamAAPC-certified coders
HCPCSLevel II
CMNForms
RR/NURental/Buy
92%+Clean

Why DME Billing Requires Specialty Expertise

DME billing uses HCPCS Level II codes with CMN documentation, proof of delivery requirements, and rental/purchase rules that differ by equipment category.

Common DME CPT Codes

Our coders handle these dme codes daily. This is not an exhaustive list.

Code
Description
97760
Orthotic management and training, initial encounter
97761
Prosthetic training, initial encounter
97763
Orthotic or prosthetic management, subsequent encounter
95851
Range of motion measurements per extremity
97140
Manual therapy techniques
E0260
HCPCS: Semi-electric hospital bed with mattress
E0601
HCPCS: Continuous positive airway pressure (CPAP) device
K0823
HCPCS: Power wheelchair, group 2 standard
L0631
HCPCS: Lumbar-sacral orthosis

2026 Medicare Allowables for DME CPT Codes by State

Medicare reimbursement for dmeprocedures is not a single national number. Each code's allowable is adjusted by your state's Geographic Practice Cost Index (GPCI) and processed under that state's Medicare Administrative Contractor (MAC), so the same dme CPT code pays a different amount in California than it does in Texas or Florida. The table below shows the 5 core dmecodes our coders bill priced at each state's 2026 locality. The non-facility figure is what an office-based practice collects. The facility figure applies when the service is performed in a hospital-based setting.

Commercial carriers in each state typically reimburse above these Medicare benchmarks and state Medicaid below them, but the Medicare allowable is the contracting anchor every payer negotiation starts from. Compare any individual code across all states with our Medicare fee calculator by state.

2026 Medicare non-facility allowable for DME CPT codes across high-volume states
CodeDME ProcedureCATXFLNYPAILOHGANCMI
97760Orthotic management and training, initial encounter$51.86$45.71$46.51$50.37$45.67$45.48$43.57$44.85$44.03$44.46
97761Prosthetic training, initial encounter$45.15$40.12$40.81$44.03$40.11$39.99$38.38$39.43$38.73$39.12
97763Orthotic or prosthetic management, subsequent encounter$56.71$49.64$50.53$54.88$49.58$49.32$47.17$48.64$47.72$48.18
95851Range of motion measurements per extremity$29.82$25.74$26.44$28.78$25.70$25.69$24.28$25.19$24.57$24.95
97140Manual therapy techniques$30.47$27.58$28.08$30.03$27.61$27.64$26.59$27.21$26.73$27.06

Full DME fee detail by state

2026 Medicare allowables for dme CPT codes in California, processed under Noridian Healthcare Solutions (Jurisdiction E). See California medical billing.

2026 Medicare allowables for DME CPT codes in California
CodeDescriptionNon-FacilityFacility
97760Orthotic management and training, initial encounter$51.86$51.86
97761Prosthetic training, initial encounter$45.15$45.15
97763Orthotic or prosthetic management, subsequent encounter$56.71$56.71
95851Range of motion measurements per extremity$29.82$6.90
97140Manual therapy techniques$30.47$30.47

Source: 2026 Medicare Physician Fee Schedule, locality-adjusted by state MAC. Figures are for reference and contracting benchmarks, not a guarantee of payment.

DME Billing Challenges We Solve

Common billing problems in dme and how our team handles them.

CMN Documentation

Incomplete CMN forms are the #1 DME denial reason.

Rental vs Purchase

Capped rental, inexpensive/routine, and frequent service categories each have rules.

Proof of Delivery

Missing delivery documentation = denied claim with no appeal.

Prior Authorization

Many DME items require pre-approval before delivery.

Common DME Denial Reasons

We prevent these before submission and appeal aggressively when they occur.

!
Incomplete CMN forms are the #1 DME denial reason
!
Capped rental, inexpensive/routine, and frequent service categories each have rules
!
Missing delivery documentation = denied claim with no appeal
!
Many DME items require pre-approval before delivery

Revenue Opportunities Most DME Practices Miss

DME revenue optimization centers on proper equipment categorization and CMN compliance. Many DME suppliers lose revenue because CMN forms are incomplete — missing physician signatures, incorrect diagnosis codes, or incomplete medical necessity statements. Each rejected CMN delays payment by 30 to 60 days. Capped rental items represent a significant recurring revenue stream, but only if the rental period is tracked correctly and claims are submitted monthly. Missing a single month resets the rental period. For a DME supplier with 200 active rental items averaging $100 per month, consistent monthly billing generates $240,000 annually.

Payer-Specific DME Billing Tips

Medicare DME billing goes through four DME Medicare Administrative Contractors (MACs). Each MAC has jurisdiction over specific states and may have slightly different coverage policies for certain equipment categories. The Medicare DME competitive bidding program affects pricing in designated metropolitan areas. Commercial payers increasingly follow Medicare DME coverage criteria but may have different documentation requirements. Prior authorization is required by most commercial payers for power wheelchairs, CPAP/BiPAP, and high-cost orthotics. We track each payer's auth requirements and documentation standards.

DME Billing Best Practices

Practical tips from our coding team to maximize reimbursement and minimize denials.

1
Proof of delivery (POD) documentation is required for every DME claim — without it, the claim is denied with no appeal rights. Keep signed delivery tickets for 7 years.
2
Certificates of Medical Necessity (CMN) must be completed by the ordering physician, not the DME supplier. The physician must sign and dates the CMN.
3
For capped rental items, track the 13-month rental period. After 13 continuous months of rental, ownership transfers to the patient and billing stops.
4
HCPCS modifiers RR (rental), NU (new purchase), and UE (used equipment) must be applied correctly — the wrong modifier changes the payment methodology entirely.

Get Expert DME Billing Support

Free billing assessment for your dme practice. See where revenue is leaking.

92%+ clean claim rate
2.49% starting rate
Results in 30 days

Fill in your details and we'll call you back

92% clean claim rate
7 years in business
HIPAA compliant
AAPC certified
Or call directly:888-701-6090

What We Handle for DME Practices

HCPCS Level II coding
CMN form management
Prior authorization
Proof of delivery tracking
Rental/purchase billing
Medicare DME MAC compliance

Why Choose Go Medical Billing for DME

DME is heavily audited. Our processes withstand scrutiny with complete documentation, proper coding, and compliant submission.

We serve dme practices in all 50 states, starting at 2.49% of collections. Our credentialing team handles payer enrollment, and our A/R specialists recover aging claims.

DME Billing by State

We handle dme billing in all 50 states. The 2026 Medicare allowables for dme CPT codes in every state are in the fee table above. Open any state below for its full payer environment, Medicaid rules, and Medicare MAC policies.

Frequently Asked Questions

Yes. All DME MACs, competitive bidding compliance, and supplier standards.
Completed accurately, filed on time, maintained per Medicare requirements.

Get Expert DME Billing Support

Stop losing revenue to dme coding errors and preventable denials. Call 888-701-6090 for a free billing assessment.