MedicaidReimbursementHigh impact
Fiscal year 2023 Rate Increase for DMS/DME & Oxygen Services
Maryland Medicaid·MD·Provider Transmittal
Effective date
Jul 1, 2022
We identified it
Jun 20, 2026
Summary
Effective July 1, 2022, Maryland Medical Assistance Program increased reimbursement rates for Disposable Medical Supplies (DMS), Durable Medical Equipment (DME), and Oxygen Services to 85% of the Medicare fee schedule established January 1, 2022. Billing teams must update fee schedules in their systems to reflect the new rates for all Medicaid claims.
Action Required
By July 1, 2022: Billing team must update all rate tables and fee schedules in the billing system to reflect 85% of the January 1, 2022 Medicare fee schedule for DMS, DME, and Oxygen Services. Contact the Maryland Medical Assistance Program (Sara Daneshpour at 410-767-1726 or sara.daneshpour@maryland.gov) to obtain the complete updated fee schedule. Verify that all claims submitted for these service categories after July 1, 2022 are calculated using the new rates. Failure to update rates will result in underbilling and lost revenue. Notify all providers, coders, and billing staff of this rate increase. Review historical claim denials related to rate limits and consider resubmission of claims affected by the previous lower rates if within appeal windows.