Drugs and Biologicals Payment Policy — Physician/Clinician‑Administered Drugs
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Governs reimbursement, billing, prior authorization, and reporting requirements for medically necessary non–self-administered drugs and biologicals under Fallon Community Health Plan products; affects contracted providers, hospitals, clinics, PACE programs, and others administering medical-benefit drugs.
Added a new section on Opioid Reversal Agents with product and code mappings (NDCs, GPI-14 descriptions, and HCPCS where present).
Added Spravato® (Esketamine) Nasal Spray billing and coding update specifying required HCPCS codes (G2082/G2083) and effective dates for various member groups.
Added guidance that HCPCS code S0013 (Esketamine, nasal spray, 1 mg) will deny (vendor liable) for certain plan types effective specified dates.
Added Long-Acting Injectable (LAI) Antipsychotics guidance for MassHealth ACO members including billing instructions for in-state acute inpatient hospitals with DMH licensed beds.
Coverage and Reimbursement Criteria
Coverage and billing criteria
Reimbursement stance and special-payment methodologies:
Drug waste reimbursement criteria
Drug waste reimbursement criteria
Bevacizumab ophthalmologic billing
- Use J9035 (injection, bevacizumab, 10 mg) billed one unit per eye for ophthalmologic use.
Opioid Reversal Agents (Naloxone/Nalmefene)
Opioid reversal agents and related products listed with NDCs, GPI‑14 descriptions, and HCPCS mappings are included for applicability and billing.
Spravato® (Esketamine) Nasal Spray
Spravato® (Esketamine) billing and coding requirements and denial rules.
LAI Antipsychotics in Inpatient Psychiatry Units
MassHealth ACO Long‑Acting Injectable Antipsychotics billing instructions for in‑state acute inpatient hospitals with DMH licensed beds.
Code Reporting and Billing Identifiers
| HCPCS | Drugs and biologicals identified by HCPCS on professional claims; Level II HCPCS codes used on CMS-1500 (24D) and UB-04 (field 44). |
| NDC | 11-digit NDC required with qualifier and unit of measure on claims when reporting clinician-administered drugs; vaccines excluded from rebate requirement. |
| Revenue | Revenue code plus HCPCS combination used on facility claims; specific guidance for revenue 025X and splitting lines when single drug amount ≥ $10,000. |
| Modifiers JW/JZ | Report JW for discarded drug amounts and JZ to attest no discarded amounts for single-dose Part B drugs/biologics. |
| Modifiers TB/JG/UD | 340B reporting modifiers: JG (terminated 12/31/2024), TB required for 2025 for certain entities; MassHealth requires UD for 340B-acquired drugs. |
| J9035 | Injection, bevacizumab, 10 mg — ophthalmologic use; bill one unit per eye |
| SL | Modifier to indicate state-supplied vaccine (attach to vaccine/toxoid CPT with $0.00 charge); hospitals may submit token charge < $1.01 and mirror in Non-Covered Charge when required. |
| G2082 | Office/outpatient visit for E/M of established patient with supervised esketamine up to 56 mg including 2 hours post-administration observation; only 1 unit may be reported per date of service. |
| G2083 | Office/outpatient visit for E/M of established patient with supervised esketamine greater than 56 mg including 2 hours post-administration observation; only 1 unit may be reported per date of service. |
| S0013 | Esketamine, nasal spray, 1 mg — Not valid for Medicare; claims for S0013 will deny (vendor liable) for specified plans effective stated dates. |
Provider Responsibilities and Prior Authorization
Obtain prior authorization when required
Ordering physician must obtain prior authorization for drugs and biologicals that require Plan prior authorization; the list of drugs and biologicals that require prior authorization is available online at Fallon Health Pharmacy Prior Authorization.
Route prior authorization requests to Prime Therapeutics for specified POS
Since October 1, 2024, Prime Therapeutics reviews prior authorization requests for physician/clinician‑administered drugs provided in Places of Service 11, 12, 19 and 22; providers must submit PA requests to Prime via their secure portal (https://gateway.pa.com/) or fax (1‑888‑656‑6671) and may call Prime at 1‑800‑424‑1740 for assistance.
- For drugs administered in POS other than 11, 12, 19 and 22, submit PA requests to Fallon Health (electronic, fax, mail or telephone).
- If Prime portal is inaccessible, fax to 1‑888‑656‑6671.
Submit MassHealth APAD/APEC carve-out drug PAs to MassHealth DUR
Effective April 1, 2025, prior authorization requests for MassHealth APAD and APEC carve-out drugs must be submitted to the MassHealth Drug Utilization Review (DUR) Program for review and approval before administration; Fallon will continue to review and pay related professional and facility services.
- The MassHealth APAD/APEC carve-out list (e.g., CAR T/gene therapies) is available at the MassHealth Drug List website.
- Only the carve-out drugs themselves will be reviewed and reimbursed by MassHealth; submitters must use the DUR Program for PA of these drugs for dates of service on or after 4/1/2025.
Obtain Interdisciplinary Team approval for PACE members
PACE plan members require approval of care and services by the member's Interdisciplinary Team except for emergency care and out‑of‑area urgently needed care; providers must ensure Interdisciplinary Team approval prior to providing non‑urgent services.
Report JW/JZ modifiers for discarded or zero discarded amounts
Providers must report the JW modifier when a drug amount from a single‑dose container or single‑use package is discarded and the JZ modifier to attest that no drug amount was discarded; claims for separately payable Part B drugs from single‑dose containers or single‑use packages that do not report JW or JZ as appropriate may be subject to audits and, effective October 1, 2023, will be denied.
- Document discarded amounts in the member's medical record (date, time, staff name) as required by CMS guidance.
- JW/JZ modifiers are not appropriate for multi‑dose containers, packaged OPPS/ASC drugs, or drugs administered in RHC/FQHC settings.
Opioid antagonists dispensed under state law do not require PA
Opioid antagonists dispensed pursuant to Massachusetts law and the statewide standing order do not require prior authorization or an individual prescription when dispensed under the standing order; coverage is provided under the medical benefit when dispensed by the facility and under the pharmacy benefit when dispensed by a pharmacist.
- When dispensed by facilities, bill using revenue code 0636 with the appropriate HCPCS, NDC and ICD‑10 F11.1–F11.99.
- Pharmacist dispensing under M.G.L. c.94C, §19B is allowed without individual prescription; refer to the Mass. standing order for naloxone.
Meet PA criteria and bill LAI antipsychotics on professional claim
Drug‑specific prior authorization criteria, if applicable, must be met as a condition of payment for Long‑Acting Injectable (LAI) antipsychotics administered in inpatient psychiatry units; hospitals must exclude LAI drug charges from facility/institutional claims and submit separate professional claims (CMS‑1500) with the appropriate HCPCS and NDC.
- Exclude LAI antipsychotic charges from the inpatient facility claim and bill the drug on a professional claim (CMS‑1500) to Fallon Health.
- LAI Antipsychotics are identified on the MassHealth Long‑Acting Injectable Antipsychotic list; follow that list and MassHealth billing guidance.
Key Terms and Modifiers
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