DME Manual, Chapter IV, Covered Services and Limitations:

NOTE: The provider must accept Medicaid payment as payment in full and may not bill the individual, including shipping and handling charges. Costs incurred for shipping and handling, except when otherwise noted, are considered to be a part of the DME provider’s overhead/business expenses.

Comment by Ability Unlimited:

We disagree that the shipping and handling should be the provider O/H as some items are very bulky and heavy – shipping and handling can be incredibly significant costs - Especially on items that the designated fee barely covers the cost of the item.   

OR, if the shipping and handling costs are to be excluded a proposed 40% addition, rather than the current 30% addition, could be added to the MFR cost to the provider to offset those significant O/H expenses.