Pharmacy Question for the Week of April 24, 2017

Question:

How does CMS determine payment for a drug that is not listed in the ASP file?

Answer:

For any drug or biological not listed in the average sales price (ASP) or not otherwise classified (NOC) drug-pricing files, Medicare Administrative Contractors (MACs) will determine the payment allowance limits in accordance with the policy described in the “Medicare Claims Processing Manual,” Chapter 17, Section 20.1.3, which is available at https://www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/Downloads/clm104c17.pdf.

For any drug or biological not listed in the ASP or NOC drug-pricing files that is billed with the KD modifier, contractors shall determine the payment allowance limits in accordance with instructions for pricing and payment changes for infusion drugs furnished through an item of Durable Medical Equipment (DME) on or after January 1, 2017, associated with the passage of the 21st Century Cures Act.

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