MedicaidCoverageLow impact
Newsletter Vol. 8, No. 02
New Jersey Medicaid·NJ · Pharmacy·Pharmacy
Effective date
Dec 10, 1997
We identified it
Jun 20, 2026
Summary
The New Jersey PAAD (Pharmaceutical Assistance to the Aged and Disabled) program has added two new pharmaceutical manufacturers to its Drug Rebate Program: KOS Pharmaceuticals, Inc. (Labeler Code 60598) and EM Pharma Division of Dey Laboratory (Labeler Code 63254), both effective December 10, 1997. Billing teams must recognize these manufacturers' products are now covered under PAAD and update their pharmacy benefit systems accordingly.
Action Required
By March 31, 1998 (publication date + 30 days): Pharmacy billing staff must update pharmacy benefit systems and formularies to recognize Labeler Codes 60598 (KOS Pharmaceuticals, Inc.) and 63254 (EM Pharma Division of Dey Laboratory) as PAAD-covered manufacturers. Verify that claims for medications from these manufacturers are processed under PAAD coverage, not Medicaid. Note: PAAD and Medicaid drug rebate programs have different coverage rules—ensure correct program assignment in billing software. Update internal reference materials and retain this newsletter in compliance files. Failure to update systems may result in improper claim denials or rebate processing errors for eligible PAAD beneficiaries.