MedicaidReimbursementMedium impact
KMAP BULLETIN: Discontinuation of Separate Handling Fee Reimbursement for High Dollar Rare Disease Drugs
Kansas Medicaid (KanCare)·KS · Oncology, Hematology, Genetics +3 more·Claims & Billing
Effective date
Nov 1, 2025
We identified it
Jun 21, 2026
Summary
Kansas Medicaid (KMAP) will discontinue separate handling fee reimbursements for high dollar rare disease drugs effective November 1, 2025. The $250 and $50 handling fees associated with procedure code 99199 and specific modifiers will no longer be paid.
Action Required
Before November 1, 2025: Billing team must update system to stop billing procedure code 99199 with modifiers U1 ($250 handling fee) and U3 ($50 handling fee) for high dollar rare disease drug claims to Kansas Medicaid. Remove these codes from encounter forms and billing templates for KMAP patients. Monitor KanCare MCO implementation dates as they may vary from the November 1st effective date.