Does Medicare Cover Durable Medical Equipment? The Supplier Rule Nobody Explains
Medicare pays 80% of the approved amount for medical equipment. Your final bill depends on two questions about the supplier: is it enrolled in Medicare, and does it accept assignment?
Medicare Part B covers durable medical equipment (DME) such as wheelchairs, walkers, hospital beds, CPAP machines and oxygen equipment when a doctor prescribes it as medically necessary for use at home. After the annual Part B deductible ($283 in 2026), Medicare pays 80% of the approved amount and you pay 20%. That holds only if the supplier is enrolled in Medicare. If the supplier also accepts assignment, your share is limited to the 20%. If it does not, it can charge more.
"Medicare pays 80%, you pay 20%" is the usual summary. Which supplier you use decides whether that is what you pay, so check the supplier before you order.
What counts as DME
Medicare applies four tests. The equipment has to:
- stand up to repeated use, so it is not disposable
- serve a medical purpose, and not be something generally useful to anyone
- be suitable for use in the home
- be prescribed by a doctor as medically necessary for a specific condition
Commonly covered: wheelchairs and power scooters, walkers and canes, hospital beds, CPAP and oxygen equipment, blood glucose monitors and test strips.
Generally not covered: home modifications such as ramps and grab bars, most disposable supplies, and items that are for convenience.
The cost-sharing math
Part B pays 80% of the Medicare-approved amount once you have met the annual Part B deductible, $283 in 2026. You pay the other 20%.
For example, if the approved amount for a walker is $100 and you have met the deductible, Medicare pays $80 and you pay $20. For equipment with an approved amount of $2,500, your 20% is $500. A Medigap policy generally pays that coinsurance for you. A Medicare Advantage plan sets its own cost-sharing and may require prior authorization and a network supplier.
Rent or buy?
| Type of item | Examples | How Medicare pays |
|---|---|---|
| Inexpensive or routinely purchased, generally about $150 or less | Standard cane, walker | Usually bought outright |
| Capped rental | Power wheelchairs and scooters, hospital beds | Monthly rental. After about 13 months of continuous rental, the item is yours and payments stop. |
During a rental, you pay 20% of each monthly rental amount.
The 80/20 Split
Medicare pays 80% of the approved amount after the $283 (2026) Part B deductible. You pay the 20% coinsurance.
Not Enrolled = $0 Paid
If your supplier isn't enrolled in Medicare, Medicare pays nothing at all.
Assignment = Capped 20%
A participating supplier accepts assignment on every claim, capping your cost at the standard coinsurance.
Non-Assigned = Uncapped
A non-participating supplier can decline assignment claim by claim, billing above the Medicare-approved amount.
The two supplier questions that decide your bill
1. Is the supplier enrolled in Medicare? If it is not enrolled as a DME supplier, Medicare pays nothing, however necessary the equipment is and whatever the doctor prescribed. You pay the whole cost. Many online and retail sellers are not enrolled.
2. Does the enrolled supplier accept assignment?
- A participating supplier accepts assignment on every claim. It takes the Medicare-approved amount as full payment and can collect only your deductible and 20% coinsurance.
- A non-participating supplier is enrolled, so Medicare pays its 80% share. But the supplier decides claim by claim whether to accept assignment. When it does not, it can charge more than the approved amount, and you pay the difference on top of your 20%. It may also ask you to pay the full price up front and wait for Medicare to reimburse you.
| Supplier | Medicare pays | You pay |
|---|---|---|
| Not enrolled in Medicare | $0 | The full price |
| Enrolled, accepts assignment | 80% of the approved amount | 20% of the approved amount |
| Enrolled, does not accept assignment | 80% of the approved amount | 20%, plus whatever the supplier charges above the approved amount |
Before you order, ask the supplier: "Are you a participating Medicare supplier, and do you accept assignment on this item?" You can also look suppliers up in the directory at medicare.gov, or call 1-800-MEDICARE.
Be wary of equipment offered by phone or at an event when your doctor has not ordered it. See Social Security and Medicare scam red flags.
Frequently Asked Questions
What qualifies as durable medical equipment under Medicare?
Equipment that meets four tests: it stands up to repeated use, serves a medical purpose, is suitable for use in the home, and is prescribed by a doctor as medically necessary. Examples are wheelchairs, walkers, hospital beds, CPAP machines, oxygen equipment and blood glucose monitors. Home modifications and most disposable supplies do not qualify.
How much does Medicare pay for DME?
Medicare Part B pays 80% of the Medicare-approved amount after you meet the annual Part B deductible ($283 in 2026). You pay the other 20%. Your share is limited to that 20% only if the supplier accepts assignment. A non-participating supplier can charge more.
Does Medicare rent or buy equipment like wheelchairs?
It depends on the item. Inexpensive or routinely purchased items, generally $150 or less, such as canes and walkers, are usually bought. More expensive capped-rental items, such as power wheelchairs and scooters, are usually rented monthly, and ownership passes to you after about 13 months of continuous rental.
What happens if my DME supplier isn't enrolled in Medicare?
Medicare pays nothing, however necessary the equipment is. A supplier has to be enrolled in Medicare as a DME supplier for Medicare to pay anything. With a supplier that is not enrolled, you pay the full cost.
What's the difference between a participating and non-participating DME supplier?
A participating supplier always accepts Medicare assignment. It takes the Medicare-approved amount as full payment and can collect only your deductible and 20% coinsurance. A non-participating supplier chooses claim by claim. When it does not accept assignment, it can charge more than the approved amount, and you pay the difference as well as the coinsurance.
This article explains general federal Medicare DME coverage rules as of October 2026 and is not medical, legal or financial advice. A Medicare Advantage plan must cover DME at least as generously as Original Medicare but may use its own supplier network and prior authorization rules. For your own coverage, contact Medicare, your plan or a SHIP counselor.