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Medicare Monthly Review Part A and B
A Combined Part A and Part B Newsletter
July 2008

MLN Matters. . .Information for Medicare Providers
(Issued by the Centers for Medicare & Medicaid Services)

Part B Information

MLN Matters Number: MM6053
Related Change Request (CR) #: 6053
Related CR Release Date: May 30, 2008
Effective Date: July 1, 2008
Related CR Transmittal #: R1520CP
Implementation Date: July 7, 2008

Part B Drug Competitive Acquisition Program (CAP) Quarterly Drug Update

 

 

Provider Types Affected
Physicians billing Medicare Administrative Contractors (A/B MAC) and carriers for Medicare Part B drugs, and approved CAP vendors billing the designated Medicare A/B MAC or carrier

Impact on Providers
This article is based on Change Request (CR) 6053, which provides notice that there will be a Part B CAP Quarterly Drug List Update effective July 1, 2008. CR 6053 notifies the CAP designated carrier, carriers, and A/B MACs of the processes necessary for implementing the Part B CAP Quarterly Drug List Update effective July 1, 2008.

Key Points of CR 6053

Background
Section 303 (d) of the Medicare Modernization Act requires the implementation of a competitive acquisition program (CAP) for Medicare Part B drugs and biologicals not paid on a cost or prospective payment system basis. The CAP is an alternative to the average sales price (ASP) (buy and bill) methodology for acquiring certain Part B drugs which are administered incident to a physician's services. Beginning with drugs administered on or after July 1, 2006, physicians have a choice between buying and billing these drugs under the ASP system, or obtaining these drugs from the vendor selected in the competitive bidding process.

Additional Information
For complete details regarding this CR please see the official instruction (CR6053) issued to your Medicare A/B MAC, or carrier. That instruction may be viewed by going to http://www.cms.hhs.gov/Transmittals/downloads/R1520CP.pdf on the CMS Web site.
If you have questions, please contact your Medicare A/B MAC, or carrier at their toll-free number which may be found at http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.zip on the CMS Web site.

Also, additional information on the CAP program is available at http://www.cms.hhs.gov/CompetitiveAcquisforBios/ on the CMS Web site.

Disclaimer This article was prepared as a service to the public and is not intended to grant rights or impose obligations. This article may contain references or links to statutes, regulations, or other policy materials. The information provided is only intended to be a general summary. It is not intended to take the place of either the written law or regulations. We encourage readers to review the specific statutes, regulations and other interpretive materials for a full and accurate statement of their contents.

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