Billing Drugs Electronically - NCPDP (Rev. 3085, Implementation: Upon Implementation of ICD-10)

by  Jared Staheli
July 8th, 2015

The National Council for Prescription Drug Programs (NCPDP) Telecommunications Standard Version D.0 and Batch Standard 1.2 is the HIPAA standard for electronic retail pharmacy drug claims and coordination of benefits (COB). See the NCPDP web site at for additional information.

DME MACs that process retail pharmacy drug transactions require their retail pharmacy claimants to use this standard. Retail pharmacies must use the ASC X12 837 professional claim format to submit claims other than retail pharmacy claims to the DME MACs.

DME MACs and VMS shall accommodate quarterly and monthly NDC crosswalk updates as needed. DME MACs shall provide such crosswalks to CEDI.

DME MACs and CEDI shall reject NDC codes that have been deactivated/end dated.

A - Requirements for Implementing the NCPDP Standard

Retail pharmacies are identified by a value of A5 in the specialty code as received by the National Supplier Clearinghouse. Only suppliers with an A5 specialty code may use the NCPDP standard. DME MACs, EDI submitters, and other DME MAC trading partners are required to transmit the NDCs in the NCPDP standards for identification of prescription drugs dispensed through a retail pharmacy. NDCs replace the drug HCPCS codes for retail pharmacy drug transactions billed via the NCPDP standards.

B - Certificate of Medical Necessity (CMN)

The CMN for Parenteral Nutrition (Form CMS-852) is required. The DME Information Form for Immunosuppressive Drugs (Form DMERC-08.02) is not required when billing for immunosuppressive drugs with dates of service on or after April 1, 2006. As with other electronic formats, CMN data must be submitted within the valid transaction.

For claims submitted on the paper Form CMS-1500, retail pharmacies will continue to supply hard copy CMNs when required.

C - NCPDP Companion Document

The NCPDP Companion Guide is available at: CG.pdf

CEDI provides supplemental instructions as needed to retail pharmacy drug claim submitters (either provider, billing agent, or clearinghouse) that will submit retail pharmacy drug claims to Medicare electronically


Billing Drugs Electronically - NCPDP (Rev. 3085, Implementation: Upon Implementation of ICD-10). (2015, July 8). Find-A-Code Articles. Retrieved from

© InnoviHealth Systems Inc

Article Tags  (click on a tag to see related articles)

Publish this Article on your Website, Blog or Newsletter

This article is available for publishing on websites, blogs, and newsletters. The article must be published in its entirety - all links must be active. If you would like to publish this article, please contact us and let us know where you will be publishing it. The easiest way to get the text of the article is to highlight and copy. Or use your browser's "View Source" option to capture the HTML formatted code.

If you would like a specific article written on a medical coding and billing topic, please Contact Us.


innoviHealth Systems, Inc.
62 East 300 North
Spanish Fork, UT 84660
Phone: 801-770-4203 (9-5 Mountain)
free demo
request yours today
for any budget
sign IN
welcome back!

Thank you for choosing Find-A-Code, please Sign In to remove ads.