Medicaid provider update: High-cost Medicaid drug billing

Billing requirements for Medicaid-covered drugs

UPMC for You and UPMC Community HealthChoices are committed to complying with Medicaid billing standards for high-cost drugs administered and billed by providers for outlier payment or single case agreements. In alignment with the Department of Human Services (DHS) and CMS Medicaid Drug Rebate Program, UPMC for You and UPMC Community HealthChoices require the following for drug rebate reliability:

               General billing guidelines

• Claims must be submitted using 837 Professional or 837 Institutional formats.
• Drugs billed via HCPCS codes (e.g., J-codes) must also adhere to the following requirements:
  • Accurate National Drug Codes (NDCs) and NDC units dispensed
  • Include corresponding J-code
  • The drug appears on a single claim line, with no other services
  • Drug administration is billed separately
  • 340B-purchased drugs must include the UD modifier*

*Please note: Non-340B-purchased drugs (“carve out”) to MA beneficiaries. A 340B provider can administer both 340B and non-340B drugs. Providers are to use the UD modifier only if the drug is a 340B drug. UD modifier should not be used with non-340B drugs.

               Special guidance

• For therapies like Lyfgenia and Casgevy, the following conditions apply:
  • Providers must be registered with the Center for International Blood & Marrow Transplant Research (CIBMTR) and participate in a CMS-specified study.
  • These therapies are excluded from 340B purchasing under the model.

Please note that is it the responsibility of the provider billing team to appropriately bill for services rendered. Accurate claims submission is essential for timely payment and compliance with federal rebate programs.

References: Managed Care Operations Memorandum OPS# 10/2013-012 and OPS# 05/2013-006, and Medical Assistance Bulletin MAB2022122201