For the Week of January 23, 2017

Are there NDCs for compounded drug preparations?

A compounded drug preparation does not have a national drug code (NDC); therefore, specific HCPCS codes cannot be used, and these drugs are coded as unclassified. Substances primarily used as stabilizing agents, which are inert ingredients or diluents used in the compounded drug, are considered incidental to the preparation of the compound and are NOT eligible for reimbursement.

HCPCS code J7999—compounded drug, not otherwise classified (NOC)— replaced HCPCS code Q9977 on January 1, 2016. Several Medicare contractors have published information on their individual websites about it, and commercial payers may or may not adopt this code. Be sure to follow-up with your specific payers for their billing requirements.