Physician-Administered Drug Program

North Carolina Department of Health and Human Services (NC DHHS) Medicaid and Blue Cross and Blue Shield of North Carolina (Blue Cross NC) consider pharmacy products and medical injectables that are purchased and administered in a provider’s office or an outpatient clinic setting covered through the medical benefit as part of their Physician Administered Drug Program (PADP) for Healthy Blue providers.

Drugs covered in the PADP include therapeutic drugs, biologic agents, immune globulins, vaccines, some implantable drugs, and therapeutic radiopharmaceutical agents.

Injectable medications are covered only when oral medications are contraindicated.

The PADP covers many, but not all, drugs administered by injection or infusion:

Many injectable drugs and drugs for IV administration are covered through the PADP.
Several injectable drugs and biologicals are covered only through the outpatient pharmacy program.
NCDHHS periodically publishes the Medication Coverage Restriction List , which provides guidance and describes rules for select drugs when coverage is restricted, to a specific care setting.
Although drugs covered under the PADP do not require a prior authorization (PA), the Prior Authorization Look Up Tool contains specific information for North Carolina providers for many medications, including PADP.
Please verify benefit coverage prior to rendering services.

Drugs reimbursable through the PADP and their reimbursement rates may be found on the PADP Fee Schedule .

Within the PADP, indications approved by the Food and Drug Administration (FDA) are generally covered.

Within the PADP, indications approved by the Food and Drug Administration (FDA) are generally covered. In addition, off-label uses of an approved drug may be covered if the data on the drug’s use are consistent with the compendia and peer-reviewed medical literature (for example, ACIP for vaccines, and NCCN for oncology medications) on a case-by-case basis.

NC DHHS and Blue Cross NC have specific requirements for the drug to be covered under the program. The full list of requirements can be found in the PADP Catalog .

NC DHHS and Blue Cross NC cover some FDA-approved drugs that do not have an assigned procedure (HCPCS) code. Healthy Blue providers must bill unlisted or miscellaneous HCPCS codes such as J3490 (Unclassified drugs), J3590 (Unclassified biologics), or J9999 (Not Otherwise Classified, antineoplastic drug), with the NDC assigned to the drug or the claim will be denied.

Frequently Asked Questions (FAQ)

What J-Codes or HCPCS codes are covered?

NC DHHS updates the PADP Fee Schedule monthly.

Is prior authorization required?

No, Blue Cross NC does not require prior approval for drugs in the Physician Administered Drug Program when administered in a provider clinic or outpatient institutional setting.

There are post-administration claims edits based on the Food and Drug Administration (FDA) indications and ICD-10-CM codes in most situations. Providers should consult the PADP Catalog regularly to review the circumstances for which a drug is covered.

How may I request use of a PADP drug for an indication that falls outside of the FDA labeling?

If a provider determines that the indications or dosing for a particular drug is medically necessary for a beneficiary, but those parameters fall outside of the guidelines for that drug, he or she may submit medical record information and published evidence-based guidelines and/or compendia support through the Healthy Blue payment reconsideration process via Availity for clinical review on a case-by-case basis.

How would drugs or HCPCS codes not covered by the PADP Fee Schedule be obtained?

Not all drugs administered by injection or infusion are covered in the PADP as a part of the medical benefit. Some drugs are covered only under the outpatient pharmacy benefit when approved by Prior Authorization (PA)/Clinical Criteria and dispensed by a retail or specialty pharmacy.

If the drug is not listed on the most recently published PADP Fee Schedule , then the drug is not covered in the PADP under the medical benefit, and medical claims submitted for these drugs will be denied.

Other general billing information

Unless otherwise indicated, the PADP catalog contains procedure codes representing drugs, biologics, devices, and vaccines that are covered for FDA-approved indications only.
Maximum daily and monthly quantity limits apply to PADP drugs. Amounts billed in excess of these limits will be denied.
11-digit National Drug Codes (NDCs) are required to be billed along with their corresponding procedure (HCPCS) code.
Drugs and biologics (and associated NDCs) must be classified as CMS-covered outpatient drugs from a labeler/manufacturer participating in the Medicaid Drug Rebate Program (MDRP).
- Exceptions:
- Radiopharmaceuticals
- Vaccines
- Crofab