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SC Medicaid - SCDHHSMedicaid · Billing Codes · Pharmacy · SCHigh impact

340B Drug Program Billing Policy Changes

Act
by Dec 1, 2025
Effective date
Dec 1, 2025
Identified
Jun 18, 2026

Summary

Starting December 1, 2025, South Carolina providers purchasing drugs through the 340B program must include the 'TB' modifier on all Medicaid fee-for-service claims and ensure their billing numbers are on the HRSA Medicaid Exclusion file. The TB modifier must be in the second position on UB-04 claims with multiple modifiers.

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What to do

by Dec 1, 2025 · 5 steps
01Billing team must update billing systems to automatically include 'TB' modifier on all 340B drug claims for South Carolina Medicaid fee-for-service patients.
02Ensure TB modifier appears in second position on UB-04 claims with multiple modifiers.
03Verify provider's NPI and state billing numbers are listed on HRSA Medicaid Exclusion file.
04Confirm billed amounts do not exceed actual acquisition costs.
05Contact Provider Service Center at (888) 289-0709 with questions.

Original notice

340B Drug Program Billing Policy Changes
scdhhs.gov · Always check the source before changing claims.
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