A bill to amend title XVIII of the Social Security Act with respect to payments made under such title for durable medical equipment.

Amends Title XVIII (Medicare) of the Social Security Act to authorize the Secretary of Health, Education, and Welfare to determine, on the basis of medical evidence, whether purchase of durable medical equipment by a patient pursuant to title XVIII would be less costly or more practical than rental of such equipment.

Allows the Secretary to waive the 20 percent coinsurance amount with respect to purchases of durable medical equipment whenever the purchase price of the equipment is at least 25 percent less than the reasonable charge for comparable new equipment.

Directs the Secretary to encourage suppliers of durable medical equipment to make their equipment available to individuals entitled to benefits under title XVIII.