Question:

Should the modifier JW be used only on professional claims or is it appropriate for hospital claims as well?

Answer:

Some payers always have required the JW modifier on professional claims to report discarded waste but have not applied the instruction to the institutional claim. However, in transmittal 3508 the Centers for Medicare & Medicaid Services (CMS) explain that, effective July 1, 2016, it is removing contractor discretion for monitoring payment of unused drug volume, and all providers will be required to append modifier JW when billing for waste. For the transmittal outlining the new rules, go to https://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/Downloads/R3508CP.pdf.

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