MedicaidReimbursementMedium impact
Institutional Billing for $12.00 Dispensing Fee for 340B Purchased Drugs
Illinois Medicaid - HFS·IL · Nephrology·Provider Notice
Effective date
Feb 1, 2013
We identified it
Jun 20, 2026
Summary
Illinois Medicaid now pays a $12.00 dispensing fee for 340B purchased drugs used in renal dialysis treatment, effective February 1, 2013. Providers must use modifier 'UD' on claims and bill drugs on separate revenue code lines for each treatment day to receive the dispensing fee.
Action Required
Immediately for renal dialysis facilities: Update billing procedures to add modifier 'UD' as the first modifier after procedure codes for all 340B purchased drugs on UB-04 forms (Form Locator 44) or 837I electronic claims (Loop 2400). Bill drugs on separate revenue code lines for each treatment day to receive the $12.00 dispensing fee per day. Add $12.00 dispensing fee to actual acquisition cost for dates of service February 1, 2013 and after. Note that Medicare crossover claims and drugs on the Expensive Drugs and Devices Listing are not eligible for the dispensing fee but still require the UD modifier.