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Newsletter Vol. 10, No. 54

New Jersey Medicaid·NJ · Pharmacy, Endocrinology, Oncology +1 more·Pharmacy
Effective date
Sep 1, 2000
We identified it
Jun 20, 2026
Days to comply

Summary

Effective September 1, 2000, New Jersey Medicaid and NJ KidCare FFS programs will only reimburse Medicare-covered prescription drugs and diabetic materials when supplied by pharmacies enrolled as Medicare-approved medical supply providers. Non-participating pharmacies must submit these claims as crossover claims through Medicare first, or request prior authorization if no alternative provider exists within 5 miles. Claims submitted by non-Medicare-approved pharmacies will be denied.

Action Required

Action needed
By September 1, 2000: Billing team must verify that all contracted pharmacies and medical supply providers are enrolled as Medicare-approved DME providers before processing claims for Medicare-covered drugs and diabetic materials for dual-eligible beneficiaries. Update billing system to route all Medicare-covered drug claims initially to Medicare using HCFA 1500 forms with Medicare-approved HCPCS codes, with claims crossing over to Medicaid/NJ KidCare for deductible/coinsurance only. For pharmacies without Medicare approval, implement prior authorization requirement through First Health Services (1-877-266-3589) and report PA code "5" in NCPDP Field 416. Train billing staff to deny payment for non-Medicare-approved provider claims except when prior authorization is obtained for geographic exceptions (no alternative provider within 5 miles). Update claim submission workflows to process these claims as crossover claims through DMERC. Failure to comply will result in claim denials and loss of Medicaid/NJ KidCare reimbursement.