Sales to the United States Government (Publication 102)
Medicare

Sales to individuals insured under the Medicare program

Your sales to individuals insured under Part A of the Medicare program are tax-exempt when Medicare pays you directly. However, your sales to individuals covered under Medicare Part B do not qualify for this exemption, even when the patient assigns the claim for reimbursement to you. For additional information, see Regulation 1591, Medicines and Medical Devices.