Prescribed Drugs Provider Manual - Iowa Department of Human ...
Prescribed Drugs Provider Manual - Iowa Department of Human ...
Prescribed Drugs Provider Manual - Iowa Department of Human ...
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<strong>Iowa</strong><strong>Department</strong><strong>of</strong> <strong>Human</strong>Services<strong>Provider</strong> and Chapter<strong>Prescribed</strong> <strong>Drugs</strong>Chapter III. <strong>Provider</strong>-Specific PoliciesPage90DateAugust 1, 20131. Reimbursement Effective February 1, 2013The Medicaid program relies on information published by Medi-Span toclassify drugs as brand or generic.a. Generic and Nonprescription <strong>Drugs</strong>For covered generic prescription drugs and for coverednonprescription drugs shall be the lowest <strong>of</strong> the following, as <strong>of</strong> thedate <strong>of</strong> dispensing:♦ Average actual acquisition cost (average AAC) plus the pr<strong>of</strong>essionaldispensing fee.♦ The federal upper limit (FUL) plus the pr<strong>of</strong>essional dispensing fee.♦ The submitted charge, representing the provider’s usual andcustomary charge for the drug.b. Brand-Name <strong>Drugs</strong>For covered brand-name prescription drugs shall be the lowest <strong>of</strong> thefollowing, as <strong>of</strong> the date <strong>of</strong> dispensing:♦ Average actual acquisition cost (average AAC) plus the pr<strong>of</strong>essionaldispensing fee.♦ The submitted charge, representing the provider’s usual andcustomary charge for the drug.2. <strong>Drugs</strong> Subject to Federal Upper Limit (FUL)a. FUL DevelopmentThe Centers for Medicare and Medicaid Services (CMS) establishesfederal upper limits (FUL) for reimbursement for multiple-source drugs.These reimbursement levels are updated periodically and are availableon the Centers for Medicare and Medicaid Services web page athttp://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-Topics/Benefits/Prescription-<strong>Drugs</strong>/Prescription-<strong>Drugs</strong>.html.