Pharmacy News
AL Medicaid
H1N1
Need to Know
Legislative News Relative to Pharmacy
Alabama Medicaid
Alabama Medicaid ALERT - Oil Spill
ALERT Letter
PDL Update
DME Program Updates
H1N1 News (Click here for more information on the topics listed below)
Pharmacist's Pandemic Preparedness Guide (download pdf)
Business Pandemic Influenza Checklist (download pdf)
CDC Health Advisory - Seasonal Influenza A (H3N2) Virus Infections
FDA Approves Vaccines for the 2010-2011 Influenza Season
Need to Know
FDA News
For product safety information, please visit the MedWatch website.
To review MedWatch Drug Safety Labeling Changes please click here.
To view current drug shortages click here.
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Legislative News Relative to Pharmacy
Pharmacy Legislative Outcomes 2010
2010 Alabama Bills Impacting Pharmacy (view)
Congressional Topics of Interest to Pharmacy
Senate and House Pass Bill with Extension of Increased Funding to State Medicaid Programs
The August 10 House passage follows Senate passage of the funding bill last week. The bill will now proceed to President Obama for enactment.
Bill Authorizing Secure Controlled Substance Disposal Methods Passes Senate
The Health Subcommittee of the Energy and Commerce Committee passed H.R. 5809, the Safe Drug Disposal Act of 2010, sponsored by Rep. Jay Inslee (D-WA) on July 22. On August 3, this legislation passed in the Senate. This legislation would allow communities to establish drug take-back programs which would allow non-DEA registrants to return unused prescription drugs to designated drug repositories.
Financial Reform Bill
This legislation signed into law on July 28, 2010 includes a provision which would allow the Federal Reserve to set reasonable transaction fees for credit and debit card transactions. Now that the law has passed, pharmacies can apply two of the amendment’s provisions right away: 1) Establishing a minimum transaction amount (up to $10) for the use of a credit card; 2) Offering discounts to customers for using a lower cost payment method (i.e., cash vs. credit card).
PBM Reform: H.R. 5234
The PBM Audit Reform and Transparency Act of 2010 recently introduced by Reps. Weiner (D-NY) and Moran (R-KS) expands the new PBM transparency requirements included in the health care reform bill to all plans both public and private. The legislation is also the first to try and reform PBM’s auditing practices.
DME Accreditation Exemption and Competitive Bidding: H.R. 5235
The Medicare Access to Diabetes Supplies Act was recently introduced by Reps. Welch (D-VT) and Rogers (R-MI). This legislation would not require competitive bidding on diabetic supplies provided by small pharmacies, defined as pharmacies with $7 million or less in annual sales.
2010 Resolution SJR78 passed
Creating an Educational Program for the Safe Disposal of Home Generated SHARPS
(Read the resolution)
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Alabama Medicaid
Alabama Medicaid ALERT - Oil Spill
Please click here for an ALERT regarding identification of oil-related illnesses. Additional questions may be directed to the Provider Assistance Center at 1-800-688-7989.
Alabama Medicaid Pharmacy AAC/COD Submitted Rule Changes Now on Agency Website
Alabama Medicaid reimbursement modification submitted rule change and submitted State Plan Amendment is posted on the Agency website. Click here to review.
Medicaid ALERT Letter – Identifying Oil-Spill Related Illnesses
To: All Providers
RE: Identifying Oil-Spill Related Illnesses/Injuries for Medicaid Recipients
In order to track and evaluate health outcomes and costs related to the BP Oil Spill, the Alabama Medicaid Agency will begin use of claims billing indicators to identify services provided to Alabama Medicaid recipients when treated for an oil-spill related illness or injury.
Effective immediately, providers are asked to use the following indicators on applicable claims submitted to Alabama Medicaid:
• Professional Claims (837P, other electronic methods, or CMS-1500) – Enter Modifier “U9” (Disaster-Related Service or Illness) with all appropriate procedure codes. This modifier should follow any other modifiers currently required for claims payment.
• Institutional Claims (837I, other electronic methods, or UB-04) – Enter the Condition Code“DR” (Disaster-Related Service or Illness) as the first condition code with all appropriate services.
• Pharmacy POS Transactions – Enter the NCPDP Field Reason for Service Code
Providers should begin immediately to use these indicators on claims submitted for Medicaid payment. Please contact the Provider Assistance Center at 1-800-688-7989 with any related questions.
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Medicaid PDL Update
Effective July 1, 2010, the Alabama Medicaid Agency updated the Preferred Drug List (PDL) to reflect the recent Pharmacy and Therapeutics (P&T) Committee recommendations as well as quarterly updates.
The updates are listed below:
PDL Additions
Besivance—EENT Preparations/ Antibactericals
PDL Deletions *
Pramox—Skin and Mucous Membrane Agent
Optivar—EENT Preparations/ Antiallergic Agents
*denotes that these brands will no longer be preferred but are still covered by Alabama Medicaid and will require Prior Authorization (PA). Available covered generic equivalents (unless otherwise specified) will remain preferred.
Also effective July 1, the Alabama Medicaid Agency added the First Generation Antihistamines to the Preferred Drug List (PDL).
Non-preferred brands in this class require prior authorization (PA) for payment. The Preferred Drug List (PDL) has been updated to reflect these changes. The criteria for the First Generation Antihistamines can be found on the Agency’s website at www.medicaid.alabama.gov and should be utilized by the prescribing physician or the dispensing pharmacy when requesting a PA.
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Updated Information from the Medicaid DME Program
Attention DME Providers
Correction to the information in the April 2010 Provider Insider Newsletter and information sent to DME providers from webwork@medicaid.ala regarding Medicaid’s coverage of procedure code E0140 (walker with trunk support, adjustable or fixed height, any type). The information that the Alabama Medicaid initially sent out stated that effective March 1, 2010 Alabama Medicaid would be covering specialty walkers for children up to the age of 21 through the EPSDT Program with procedure code E0140 using modifier U8. Medicaid will still be covering specialty walkers using procedure code E0140 but modifier U8 will no longer be required.
Effective May 1, 2010, Alabama Medicaid began reimbursing DME providers the amounts listed for the following procedure codes:
Reimbursement
E0149 - Walker, heavy duty without wheels, rigid or folding any type, each $161.00
Recipient’s weight, width and height must be submitted with prior authorization requests.
E0168 - Commode chair, extra wide and/or heavy duty, stationary or mobile, with or without arms, any type, each $191.50
Recipient’s weight, width and depth must be submitted with the prior authorization requests for these codes.
E0303 - Hospital bed, heavy duty extra wide, with weight capacity greater than 350 pounds, but less than or equal to 600 pounds, with any type side rails, with mattresses $2,037.00
E0304 - Hospital bed, extra heavy duty, extra wide, with weight capacity greater than 600 pounds, with any type side rails, with mattresses
Medicaid will reimburse for this code based on provider’s invoice price plus 20%.
Recipient’s weight must be submitted with prior authorization requests for these codes.
E0911 - Trapeze bar, heavy duty, for patient weight capacity greater than 250 pounds, attached to bed, with grab bar $523.40
E0912 - Trapeze bar, heavy duty, for patient weight capacity greater than 250 pounds, free standing, complete with grab bar
Medicaid will reimburse for this code based on provider’s invoice price plus 20%.
Recipient’s weight must be submitted with prior authorization for these codes.
Effective June 1, 2010, The National Registry of Rehabilitation Technology Supplier (NRRTS) or the Rehabilitation Engineering Assistive Technology Society of North America (RESNA) certified professional must have direct, in person involvement in the wheelchair selection for the recipient. RESNA certifications must be updated every two years. NRRTS certification must be updated annually. Prior authorization requests will be denied if the NRRTS or RESNA professional’s certification is not current; the contractor will deny the PA request.
The Occupational Therapist (OT) or the Physical Therapist (PT) performing the wheelchair assessment may not be employed by the DME company or contracted with the DME company requesting the physical therapy evaluation.
Effective July 1, 2010, the current blood glucose test strips and lancets policy for non-insulin dependent recipients were changed as follows:
The number of blood glucose test strips were changed from two boxes each month to one box each month and lancets from one box per month to one box every two months for non-insulin dependent diabetics. If more than one box of blood glucose test strips or lancets is needed, the provider should submit the request for the additional strips or lancets with medical documentation from the primary physician to the LTC Medical Quality and Review Unit for review and approval.
Clarification for non-oxygen DME repairs (K0739, E1399)
Alabama does not require a PA for K0739 (repair or non-routine service for durable medical equipment other than oxygen equipment requiring the skill of a technician, labor component, per 15 minutes), however, a maximum of four units (1unit = 15 minutes) for non-oxygen related repairs requiring the skill of a technician is allowed. Any repair request that requires labor exceeding the four units must be submitted to the LTC Medical Quality and Review Unit for review and approval.
Replacement parts are reimbursed based on the procedure code and fee schedule pricing. In situations where there are no procedure codes or fee schedule reimbursement for the repair item(s), the provider must submit procedure code E1399 (durable medical equipment, miscellaneous) with an itemized list of the needed repair items with invoice pricing for each item. Alabama Medicaid will reimburse for these repair items based on provider’s invoice price plus 20%.
Revised policy criteria for coverage of Adult (age -21-64) Prosthetic, Orthotic and Perdorthic Devices
Effective June 1, 2010, the procedure codes used for the billing of Prosthetic, Orthotic and Perdorthic Devices for Adults age 21-64 no longer require prior authorization.
Consignment Closets
Durable Medical Equipment (DME) will not be reimbursed if it is consigned. DME should be provided in accordance with Medicaid policy governing participation in the Alabama Medicaid Durable Medical Equipment (DME) Program (see page 14-2 of the Medicaid DME Provider Manual.) You will note that “DME providers must have a physical location in the state of Alabama or within a 30-mile radius of the Alabama State line. Additionally, there must be one person to conduct business at the physical location. Answering machine and/or answering services are not acceptable as personal coverage during normal business hours. Satellite businesses affiliated with a provider are not covered under the provider contract; therefore, no reimbursement will be made to a provider doing business at a satellite location, however the satellite could enroll with a separate NPI”. It is the position of the Alabama Medicaid Agency that equipment consigned to a clinic or physician office does not meet this requirement.
Alabama Medicaid usage of Invacare’s Seating/Mobility Evaluation Form
Effective August 1, 2010, Alabama Medicaid will require DME providers to complete
Invacare’s Seating/Mobility Evaluation Form as an attachment to the Alabama Medicaid Prior Review and Authorization form (Form 342). Invacare’s Seating/Mobility Evaluation Form will replace Alabama Medicaid’s Motorized/Power Wheelchair Assessment Form (Form384). The Invacare Seating/Mobility Assessment Form will be accessible on the Alabama Medicaid website at www.Medicaid.Alabama.Gov; Billing; Forms; Prior authorization Forms.
Effective June 1, 2010, Alabama Medicaid began coverage of procedure code K0005 (ultra lightweight wheelchair).
Alabama Medicaid $50,000.00 Surety Bond Requirement Update
The Alabama Medicaid DME and Medical Supply providers will be required to have a $50,000 Surety Bond for each NPI by October 1, 2010. A DME provider who has been a Medicaid provider for five years or longer with no record of impropriety, and whose refund requests have been repaid as requested will be exempt from the Alabama Medicaid $50,000 Surety bond requirement.
A DME and Medical Supply business is exempt from surety bond requirements if the DME and Medical Supply business:
(a) Is a DME supplier who has been a Medicaid provider for five years or longer with no record of impropriety, and whose refund requests have been repaid as requested; or
(b) Is a government-operated Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS); or
(c) Is a state-licensed orthotic and prosthetic personnel in private practice making custom-made orthotics and prosthetics; or
(d) Are physicians and non-physician practitioners, as defined in section 1842(b)(18) of the Social Security Act; or
(e) Are physical and occupational therapists in private practice; or
(f) Are providers who received $100,000 or less Medicaid payment in the past two calendar years; or
(g) Are pharmacy providers; or
(h) Are phototherapy providers who only provide phototherapy services for infants; or
(i) Are Federally Qualified Health Centers.
DME suppliers who have been a Medicaid provider for five years or longer who are initially exempted from the Medicaid Surety Bond requirement as referenced in Rule (12)(a) of Administrative Code , Chapter 13, will be subject to the Surety Bond requirement if the Medicaid Agency identifies a consistent problem with improper billing or fraudulent activity.
DME providers requesting initial enrollment as an Alabama Medicaid provider will be required to have a $50,000 Surety Bond for three years before qualifying for the $100,000 two year exemption.
If you have additional questions or need further clarification, please contact Ida Gray at 334-353-4753.
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