MedicaidBilling CodesHigh impact
340B Pharmacy Claims Require a Submission Clarification Code 20
Alaska Medicaid·AK · Pharmacy·Pharmacy
Effective date
Feb 1, 2026
We identified it
Jun 21, 2026
Summary
Effective February 1, 2026, Alaska Medicaid requires 340B dispensing pharmacies to use submission clarification code 20 when billing for 340B drugs and bill no more than actual acquisition cost plus dispensing fee. This ensures proper exclusion from Medicaid drug rebate invoicing to prevent duplicate discounts.
Action Required
By February 1, 2026: Billing team must update pharmacy billing systems to automatically include submission clarification code 20 (NCPDP Field 420-DK) for all 340B drug claims submitted to Alaska Medicaid. Ensure ingredient cost reflects 340B acquisition cost, not pre-rebate purchase price. Contract pharmacies must carve out Alaska Medicaid claims entirely. Failure to use code 20 will result in improper rebate processing.