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Ohio's Medicaid Laws & Rules for Pharmacy Billing

    Eligible Providers

    • Providers that are eligible for reimbursement under Medicaid's pharmacy billing rules are pharmacy providers, hospitals and other providers. To qualify as a pharmacy provider, a business or entity must possess a current Drug Enforcement Agency number, employ a licensed and registered pharmacist whose responsibilities include maintaining actual and full charge of a pharmacy, and sign the Ohio Medicaid provider agreement. A hospital is eligible if it meets all of the qualifications for a pharmacy. Ohio's Medicaid service will categorize the hospital as a prescribed drug service with permission to prescribe take-home drugs that a patient may self-administer. Other providers are those that possess a credible Medicaid provider service agreement and may dispense pharmaceuticals, but don't meet the qualifications of a pharmacy. Medicaid categorizes other providers as a prescribed drug service.

    Provider Agreement

    • Ohio's Medicaid provider service agreement is a contract that permits health care providers that meet Medicaid guidelines to participate in the program and provide treatment to Medicaid beneficiaries. The guidelines in the agreement cover treatment options and billing standards, and include the following rules. The provider must provide, without regard to factors such as race, sex or religion, medically necessary and required treatment for the standard charge for that treatment. The provider must determine and collect the patient's third-party resources available for the charge amount before billing Ohio's Medicaid service. By signing the agreement, the provider agrees to accept Medicaid's allowable amount for the reimbursement of medical treatment. Providers must document all treatment they provide to Medicaid beneficiaries and all financial transactions for those treatments.

    Quantity Limits

    • Medical providers who qualify for pharmacy billing under Ohio's Medicaid rules are subject to quantity limits for the amount of each drug prescribed, and billed for, during a certain time period. The time period for most pharmaceuticals is one day, but certain drugs, such as cough syrup containing codeine, have time periods that last one month.

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