Medications/Drugs (Outpatient/Part B)
UnitedHealthcare Medicare Advantage Coverage Summary
Proprietary Information of UnitedHealthcare. Copyright 2024 United HealthCare Services, Inc.
Note: After searching the Medicare Coverage Database, if no LCD/LCA is found, then use the policy referenced above for
coverage guidelines. (Accessed July 1, 2024)
Drugs Treated as Hospital Outpatient Supplies
In certain circumstances, Medicare pays for drugs that may be considered Usually self-Administered By the Patient when
such drugs function as supplies. This is the case when the drugs provided are an integral component of a procedure or
are directly related to it, i.e., when they facilitate the performance of or recovery from a particular procedure. Except for
the applicable copayment, hospitals may not bill beneficiaries for these types of drugs because their costs, as supplies,
are packaged into the payment for the procedure with which they are used. Listed below are examples of when drugs are
treated as supplies and hospitals should bill Medicare for the drug as a supply and should not separately bill the member.
Sedatives Administered to a patient while he or she is in the preoperative area being prepared for a procedure.
Mydriatic drops instilled into the eye to dilate the pupils, anti-inflammatory drops, antibiotic drops/ointments, and
ocular hypotensives that are Administered to a patient immediately before, during, or immediately following an
ophthalmic procedure; this does not refer to the patient’s eye drops that the patient uses pre-and postoperatively.
Barium or low osmolar contrast media provided integral to a diagnostic imaging procedure.
Topical solution used with photodynamic therapy furnished at the hospital to treat non-hyperkeratotic actinic keratosis
lesions of the face or scalp.
Antibiotic ointments such as bacitracin, placed on a wound or surgical incision at the completion of a procedure.
The following are examples of when a drug is not directly related or integral to a procedure and does not facilitate the
performance of or recovery from a procedure. Therefore, the drug is not considered a packaged supply. In many of these
cases the drug itself is the treatment instead of being integral or directly related to the procedure or facilitating the
performance of or recovery from a particular procedure.
Drugs given to a patient for his or her continued use at home after leaving the hospital.
Oral pain medication given to an outpatient who develops a headache while receiving chemotherapy administration
treatment.
Daily routine insulin or hypertension medication given preoperatively to a patient.
A fentanyl patch or oral pain medication such as hydrocodone, given to an outpatient presenting with pain.
A laxative suppository for constipation while the patient waits to receive an unrelated X-ray.
These two lists of examples may serve to guide hospitals in deciding which drugs are supplies packaged as a part of a
procedure, and thus may be billed under Part B. Hospitals should follow CMS’ guidance for billing drugs that are
packaged and paid as supplies, reporting coded and uncoded drugs with their charges under the revenue code
associated with the cost center under which the hospital accumulates the costs for the drugs. Refer to the
Medicare
Benefit Policy Manual, Chapter 15, §50.2 – Determining Self-Administration of Drug or Biological, M-Drugs Treated as
Hospital Outpatient Supplies. (Accessed July 1, 2024)
Hereditary Angioedema (HAE) Treatment (HCPCS Codes J0596, J0597, J0598, and
J1290)
Medicare does not have a National Coverage Determination (NCD) for Hereditary Angioedema (HAE) treatment. Local
Coverage Determinations (LCDs)/Local Coverage Articles (LCAs) do not exist.
For coverage guidelines, refer to the UnitedHealthcare Commercial Medical Benefit Drug Policy titled
Hereditary
Angioedema (HAE), Treatment and Prophylaxis.
Note: After searching the Medicare Coverage Database
, if no LCD/LCA is found, then use the policy referenced above for
coverage guidelines. (Accessed July 1, 2024)
Medications/Drugs Not Covered
Examples of medications/drugs that are not covered are:
Vitamin B12 Injections
Vitamin B12 injections to strengthen tendons, ligaments, etc., of the foot are not covered under Medicare because:
There is no evidence that vitamin B12 injections are effective for the purpose of strengthening weakened tendons and
ligaments, and
This is non-surgical treatment under the subluxation exclusion.