Medicare_Carriers_Manual / 4123 / 4123

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Note:  The following article synopsis was NOT provided by HCPro. It was created by Find-A-Code/innoviHealth.

Article Overview

This article is a Medicare manual instruction for Durable Medical Equipment Regional Carriers (DMERCs) and suppliers who bill drugs and biologicals under Medicare Part B. It covers mandatory assignment policy, beneficiary-submitted and supplier-submitted claim handling, remittance and notice messaging, and coordination with the non-licensed pharmacy initiative. The section also addresses how the claims processing environment should manage affected HCPCS drug and biological billing and related edits.

Why This Topic Matters

It helps suppliers, billing staff, and Medicare claims processors understand when assignment is required, how certain claims are handled, and how related system edits and notices are applied.

Article Sections

  1. Ed. Note: For further information see

    A short editorial note pointing readers to related guidance in another chapter.

  2. 4123. Durable Medical Equipment Regional Carriers (DMERCs)-Mandatory Assignment for Drug Claims

    General policy guidance on mandatory assignment for DMERC-billed drugs and biologicals, including the scope of the requirement and an exception noted in the text.

  3. Beneficiary-Submitted Claims

    Instructions describing how claims submitted by beneficiaries are handled, including notice usage and processing of mixed claims.

  4. Supplier-Submitted Unassigned Claims

    Guidance for supplier-submitted unassigned claims, including claim processing outcomes, remittance messaging, and related notice usage.

  5. The Non-Licensed Pharmacy Initiative

    Background on pharmacy licensure requirements for suppliers billing certain drug-related claims and the associated claims-processing edits.

  6. List of Affected HCPCS Codes

    Discussion of how DMERCs are to identify and maintain affected HCPCS code lists for billing and edit purposes.

What You Will Learn

  • The scope of Medicare assignment policy for DMERC-billed drugs and biologicals
  • How beneficiary-submitted claims are addressed under this policy
  • How supplier-submitted unassigned claims are processed in Medicare systems
  • How related remittance and notice messages are used
  • How the non-licensed pharmacy initiative interacts with claims editing
  • How affected HCPCS code lists are maintained for processing purposes

Who Should Read This

  • Medicare billing staff
  • Suppliers of DME-related drugs and biologicals
  • Claims processors
  • Compliance teams
  • Revenue cycle professionals

Codes Discussed


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