1. Billing phrase to Medicare and Medicaid fiscal intermediaries to specify medical supplies, devices, and equipment (e.g., crutches, urinary catheters, ostomy supplies, surgical dressings) for reimbursement. 2. Purchased or rented items such as a walker, seat lift equipment, wheelchairs, a hospital bed, and other medically necessary equipment prescribed by a health care provider to be used in a patient’s home and which are covered by the Medicare program. DME is paid under both Medicare Part B and Part A for home health services. Also called home medical equipment .