decisionhealth Newsletters, Answer Books - 2009 Issue 10 (October)
Supplies / You can bill Medicare for drug supply wastage
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Article Overview
This short guidance article discusses Medicare payment considerations for drug supply wastage in office-based administration settings. It is intended for physicians, facilities, and coding/billing staff who need a general understanding of how Medicare views wasted amounts, short shelf-life medications, and single-use versus multiple-use supplies. The article presents broad billing scenarios and documentation themes without serving as a code reference update.
Why This Topic Matters
Drug wastage can affect whether a provider is paid for the full supply opened or only the amount actually administered, so understanding Medicare’s general approach helps reduce billing errors and support documentation practices.
What You Will Learn
- How Medicare generally approaches wastage for in-office drugs that cannot be saved for later use.
- Why scheduling and documentation practices matter when partially used medications are involved.
- The distinction between single-use and multiple-use drug supplies in this context.
- General considerations for billing opened vial contents when some of the medication must be discarded.
Who Should Read This
- Physicians
- Hospitals and outpatient facilities
- Medical coders
- Billing staff
- Practice managers
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