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New Jersey MedicaidMedicaid · Reimbursement · Provider Notice · NJMedium impact

Newsletter Vol. 6, No. 04

Effective date
Feb 5, 1996
Identified
Jun 20, 2026

Summary

New Jersey Medicaid is reducing reimbursement rates for protein replacement supplements, specialized infant formulas, and food oils effective February 5, 1996. Payment will change from 150% of AWP to AWP minus volume discount plus dispensing fee, or usual and customary charge, whichever is lower.

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What to do

Action · 5 steps
01Before February 5, 1996: Pharmacy billing team must update reimbursement calculations in billing system for protein replacement supplements, specialized infant formulas, and food oils for New Jersey Medicaid claims.
02Change from 150% of AWP to AWP minus volume discount plus dispensing fee (or usual and customary charge if lower).
03Verify system calculates volume discounts per N.J.A.C.
0410:51-1.6 and dispensing fees per N.J.A.C.
0510:51-1.7.

Original notice

Newsletter Vol. 6, No. 04
njmmis.com · Always check the source before changing claims.
View original ↗

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