decisionhealth Newsletters, Answer Books - 2006 Issue 3 (March)
Program_Memos / 2002 / AB-02-075
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Article Overview
This article summarizes a CMS program memorandum that restates prior guidance for payment of certain drugs and biologicals. It explains the policy background, the general method used to establish payment allowance limits, and administrative instructions for carriers, intermediaries, and providers. It is relevant to billing staff, pharmacy-related providers, dialysis facilities, and others who work with Medicare drug and biological reimbursement guidance.
Why This Topic Matters
It clarifies a Medicare payment methodology update and the timing for implementation, which can affect how covered drugs and biologicals are processed and communicated across claims systems.
Article Sections
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Background
Introduces the reimbursement context for certain drugs and biologicals and identifies the general categories of services covered by the memorandum.
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Policy
Outlines the method used to establish the payment allowance limit and the general steps used to apply the policy.
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Implementation
Notes that the instructions continue prior guidance and addresses continuity of the existing process.
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Provider Education
Addresses communication to suppliers and providers regarding the continuation of the policy and the effective and implementation dates.
What You Will Learn
- The general Medicare payment framework discussed for certain drugs and biologicals
- How the memorandum relates to prior program instructions
- What administrative parties are involved in communicating payment allowance updates
- The effective and implementation timing referenced in the memorandum
Who Should Read This
- Medical coders
- Billing staff
- Compliance teams
- Pharmacy providers
- Dialysis facility administrators
- Revenue cycle professionals
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