How your equipment is billed - Purchase vs. Rental

Purchase vs. Rental

Insurance plans dictate whether equipment is to be billed as a purchase or rental.

Commonly, item(s) that are routinely replaced due to normal wear and tear are billed as purchases, while items expected to function 1 year and longer or items that require frequent professional maintenance are billed as rentals. 

Purchase

Items covered by insurance as a purchase typically:

  • Require frequent replacement due to normal wear and tear
  • Are consumables or sterile products

Rental Period

Each insurance plan may vary, but there are commonly three types of rental equipment: 

  1. Rent-to-Own
  2. Rent-to-Maintenance
  3. Continuous Rental

Rent-to-Own

These items will typically have a shorter rental period (10-13 months) with the final month converting ownership of the equipment to the patient. Ownership of the equipment is automatically converted to the patient. The patient may be responsible for repairs and other maintenance after the rental period has ended.

Rent-to-Maintenance

These items typically have a longer rental period (36+ months). Ownership of the equipment remains with the vendor and may require the vendor to maintain the equipment for the expected useful life (up to 24 additional months). 

Continuous Rental

These items require frequent maintenance for continued performance beyond routine service. Vendors are required to maintain the equipment for the lifetime of the rental. 

How do I tell if equipment is purchased or rented?

Your Delivery Ticket will indicate whether an item is a purchase or a rental. You can also refer to your Insurance Plan's Explanation of Benefits