How do I adjudicate 1927 drugs?


Medicaid Billing for Non-Covered Part D Drugs for Dual Eligibles

1)         First, bill the part D plan. If the drug is not covered, the claim will be rejected by the plan.
2)         If the rejection code is Y701, the drug is covered by Medicaid for dual eligibles.
3)         Bill Medicaid using the TPL (Third Party Liability) billing.
4)         Using the TPL billing, enter the date the claim was denied in the other payor date.
5)         If unable to locate this field, you may have to contact your software vendor. Tell him the NCPDP  
            field you need is “E8”, the field for other payor.

FYI according to Pam Ford:  Coverage by Medicaid on drugs not covered by Part D for dual-eligible patients will be the same as under the Medicaid program.  For example, if a drug has a days limit, such as Xanax XR, that is what is allowed on the non-covered Part D drug.