Question:
What is a “less than effective drug?”
Answer:
When a drug falls under a “less than effective drug” label, the Food and Drug Administration (FDA) has determined that the drug lacks significant evidence of effectiveness for all labeled indications. Payment is not made for a less than effective drug.
CPT® copyright 2024 American Medical Association (AMA). All rights reserved.
Fee schedules, relative value units, conversion factors and/or related components are not assigned by the AMA, are not part of CPT, and the AMA is not recommending their use. The AMA does not directly or indirectly practice medicine or dispense medical services. The AMA assumes no liability for data contained or not contained herein.
CPT is a registered trademark of the American Medical Association.
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