Product Wastage Documentation Requirements and Reporting- Using JW modifier

When using the JW modifier for Part B drug claims for discarded drugs and biologicals, any amount of wasted material should be clearly documented in the medical record with the following information.  

• Date, time, and location of treatment
• Approximate amount of product unit used
• Approximate amount of product unit discarded
• Reason for the wastage
• Manufacturer’s serial/lot/batch or other unit identification number

Medicare contractors may also require providers to report discarded amounts of products such as skin substitutes on a separate claim line item by attaching the JW modifier. If reporting Skin grafts or substitutes be sure and report the manufacturer’s serial/lot/batch or other unit identification number of graft material.

Reminder: the JW modifier is required for use on all claims with discarded Part B drugs and biologicals as of Jan 01, 2017. Also, effective January 1, 2017,providers must document the discarded drugs or biologicals in patient's medical record.

Note:

• The JW modifier is not used on claims for CAP drugs and biologicals.
• Multi-use vials are not subject to payment for discarded amounts of drug or biological.
• The JW modifier is only applied to the amount of drug or biological that is discarded.
• Modifier is billed on a separate line.

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