Utah Administrative Code
The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).
NOTE: For a list of rules that have been made effective since August 1, 2019, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.
R414. Health, Health Care Financing, Coverage and Reimbursement Policy.
Rule R414-60. Medicaid Policy for Pharmacy Program.
As in effect on August 1, 2019
Table of Contents
- R414-60-1. Introduction.
- R414-60-2. Definitions.
- R414-60-3. Client Eligibility Requirements.
- R414-60-4. Program Coverage.
- R414-60-5. Limitations.
- R414-60-6. Copayment Policy.
- R414-60-7. Reimbursement.
- R414-60-8. Mandatory Patient Counseling.
- R414-60-9. New Drug Products.
- R414-60-10. Over-the-Counter Drugs.
- R414-60-11. Compounds.
- R414-60-12. Provider-Administered Long-Acting Injectable Antipsychotic Drugs and Drugs for the Treatment of Opioid Use Disorders.
- Date of Enactment or Last Substantive Amendment
- Notice of Continuation
- Authorizing, Implemented, or Interpreted Law
The Medicaid Pharmacy program reimburses for covered outpatient drugs dispensed to eligible Medicaid clients by a pharmacy enrolled with Utah Medicaid pursuant to a prescription from an enrolled prescriber operating within the scope of the prescriber's license.
(1) "Covered outpatient drug" means a drug that meets all of the following criteria:
(a) Requires a prescription for dispensing;
(b) Has a National Drug Code number;
(c) Is eligible for Federal Medical Assistance Percentages funds;
(d) Has been approved by the Food and Drug Administration; and
(e) Is listed in the nationally recognized drug pricing index under contract with the Department.
(2) "Full-benefit dual eligible beneficiary" means an individual who has Medicare and Medicaid benefits.
(3) "Rural pharmacy" means a pharmacy located in the state of Utah, which is outside of Weber County, Davis County, Utah County, and Salt Lake County.
(4) "Urban pharmacy" means a pharmacy located in Weber County, Davis County, Utah County, Salt Lake County, or in another state.
(5) "Usual and customary charge" is the lowest amount a pharmacy charges the general public for a covered outpatient drug, which reflects all advertised savings, discounts, special promotions, or any other program available to the general public.
(1) Medicaid covers prescription drugs for individuals who are categorically and medically needy under the Medicaid program.
(2) Outpatient drugs included in the Medicare Prescription Drug Benefit-Part D for full-benefit dual eligible beneficiaries will not be covered under Medicaid in accordance with Subsection 1935(a) of the Social Security Act. Certain limited drugs provided in accordance with Subsection 1927(d)(2) of the Social Security Act to all Medicaid recipients, but not included in the Medicare Prescription Drug Benefit-Part D, are payable by Medicaid.
(3) Outpatient drugs included in contracts with the Accountable Care Organization (ACO) must be obtained through the ACO for clients enrolled in an ACO.
(1) Covered outpatient drugs eligible for Federal Medical Assistance Percentages funds are included in the pharmacy benefit; however, covered outpatient drugs may be subject to limitations and restrictions.
(2) In accordance with Subsection 58-17b-606(4), when a multi-source A-rated legend drug is available in the generic form, Medicaid will only reimburse for the generic form of the drug unless:
(a) reimbursing for the non-generic brand-name legend drug will result in a financial benefit to the State; or
(b) the treating physician demonstrates a medical necessity for dispensing the non-generic, brand-name legend drug.
(3) Prescriptions that are not executed electronically must be written on tamper-resistant prescription forms. Tamper-resistant prescription forms must include all of the following:
(a) One or more industry-recognized features designed to prevent unauthorized copying of a completed or blank prescription form;
(b) One or more industry-recognized features designed to prevent the erasure or modification of information written on the prescription by the prescriber; and
(c) One or more industry-recognized features designed to prevent the use of counterfeit prescription forms.
(d) Documentation by the pharmacy of verbal confirmation of a prescription not written on a tamper resistant prescription form by the prescriber or the prescriber's agent satisfies the tamper-resistant requirement. Documentation of the verbal confirmation must include the date, time, and name of the individual who verified the validity of the prescription.
(e) Pharmacies must maintain documentation of receipt of a prescription by a Medicaid client or the client's authorized representative. The documentation must clearly identify the covered outpatient drug received by the client, the date the covered outpatient drug was received, and who received the covered outpatient drug.
(f) Claims for covered outpatient drugs not dispensed to a Medicaid client or the client's authorized representative within 10 days must be reversed and any payment from Medicaid must be returned.
(1) Limitations may be placed on drugs in accordance with 42 U.S.C. 1396r-8 or in consultation with the Drug Utilization Review (DUR) Board. Limitations are included in the Pharmacy Services Provider Manual and attachments, incorporated by reference in Section R414-1-5, and may include:
(a) Quantity limits or cumulative limits for a drug or drug class for a specified period of time;
(b) Therapeutic duplication limits may be placed on drugs within the same or similar therapeutic categories;
(c) Step therapy, including documentation of therapeutic failure with one drug before another drug may be used; or
(d) Prior authorization.
(2) A covered outpatient drug that requires prior authorization may be dispensed for up to a 72-hour supply without obtaining prior authorization during a medical emergency.
(3) Drugs listed as non-preferred on the Preferred Drug List may require prior authorization as authorized by Section 26-18-2.4.
(4) Drugs may be restricted and are reimbursable only when dispensed by an individual pharmacy or pharmacies.
(5) Medicaid does not cover drugs not eligible for Federal Medical Assistance Percentages funds.
(6) Medicaid does not cover outpatient drugs included in the Medicare Prescription Drug Benefit-Part D for full-benefit dual eligible beneficiaries.
(7) Drugs provided to clients during inpatient hospital stays are not covered as an outpatient pharmacy benefit nor separately payable from the Medicaid payment for the inpatient hospital services.
(8) Medicaid covers only the following prescription cough and cold preparations meeting the definition of a covered outpatient drug:
(a) Guaifenesin with Dextromethorphan (DM) 600mg/30mg tablets;
(b) Guaifenesin with Hydrocodone 100mg/5mL liquid;
(c) Promethazine with Codeine liquid;
(d) Guaifenesin with Codeine 100mg/10mg/5mL liquid;
(e) Carbinoxamine with Pseudoephedrine 1mg/15mg/5mL liquid; and
(f) Carbinoxamine/Pseudoephedrine/DM 15mg/1mg/4mg/5mL liquid.
(9) Medicaid will pay for no more than a one-month supply of a covered outpatient drug per dispensing, except for the following:
(a) Medications included on the Utah Medicaid Three-Month Supply Medication List attachment to the Pharmacy Services Provider Manual may be covered for up to a three-month supply per dispensing. Medicaid clients eligible for Primary Care Network services under Rule R414-100 are not eligible to receive more than a one-month supply per dispensing.
(b) Prenatal vitamins for pregnant women, multiple vitamins with or without fluoride for children through five years of age, and fluoride supplements may be covered for up to a 90-day supply per dispensing.
(c) Medicaid may cover contraceptives for up to a three-month supply per dispensing.
(d) Medicaid may cover long-acting injectable antipsychotic drugs in accordance with Section R414-60-12 for up to a 90-day supply per dispensing.
(10) Medicaid will pay for a prescription refill only when 80% of the previous prescription has been exhausted, with the exception of narcotic analgesics. Medicaid will pay for a prescription refill for narcotic analgesics after 100% of the previous prescription has been exhausted.
(11) Medicaid does not cover the following drugs:
(a) Drugs not eligible for Federal Medical Assistance Percentages funds;
(b) Drugs for anorexia, weight loss or weight gain;
(c) Drugs to promote fertility;
(d) Drugs for the treatment of sexual or erectile dysfunction;
(e) Drugs for cosmetic purposes or hair growth;
(f) Vitamins; except for prenatal vitamins for pregnant women, vitamin drops for children through five years of age, and fluoride supplements;
(g) Over-the-counter drugs not included in the Utah Medicaid Over-the-Counter Drug List attachment to the Pharmacy Services Provider Manual;
(h) Drugs for which the manufacturer requires, as a condition of sale, that associated tests and monitoring services are purchased exclusively from the manufacturer or its designee;
(i) Drugs given by a hospital to a patient at discharge;
(j) Breast milk, breast milk substitutes, baby food, or medical foods, except for prescription metabolic products for congenital errors of metabolism;
(k) Drugs available only through single-source distribution programs, unless the distributor is enrolled with Medicaid as a pharmacy provider.
(12) Medicaid may only cover hemophilia clotting factor when it is dispensed by a single-contracted provider in accordance with the Utah Medicaid State Plan.
Medicaid clients are to pay any applicable copayment amount that complies with the requirements of the Utah Medicaid State Plan and Rule R414-1.
(1) A pharmacy may not submit a charge to Medicaid that exceeds the pharmacy's usual and customary charge.
(2) Covered-outpatient drugs are reimbursed at the lesser of the following:
(a) The Wholesale Acquisition Cost;
(b) The Federal Upper Limit assigned by the Centers for Medicare and Medicaid Services;
(c) The Utah Maximum Allowable Cost; and
(d) The submitted ingredient cost.
(e) If a prescriber obtains prior authorization for a brand-name version of a multi-source drug in accordance with 42 CFR 447.512 or if a brand-name drug is covered because a financial benefit will accrue to the State in accordance with Section 58-17b-606, then Medicaid will not apply the Utah Maximum Allowable Cost or Federal Upper Limit to the claim.
(f) Pharmacies participating in the 340B program and using medications obtained through the 340B program to bill Medicaid must submit the actual acquisition cost of the medication on the claim.
(g) Pharmacies that participate in the Federal Supply Schedule and use medications obtained through the schedule to bill Utah Medicaid, must submit the actual acquisition cost of the medication on the claim unless the claim is reimbursed as a bundled charge or All Inclusive Rate.
(h) Pharmacies that obtain and use medications at a nominal price must submit the actual acquisition cost of the medication on the claim.
(i) The Utah Maximum Allowable Cost (UMAC) for drugs for which the Centers for Medicare and Medicaid Services (CMS) publishes a National Average Drug Acquisition Cost (NADAC), is the NADAC itself. The UMAC for which CMS does not publish a NADAC is calculated by the Department.
(3) Dispensing fees are as outlined in the Utah State Plan, Attachment 4.19-B as approved by CMS and as follows:
(a) Medicaid will pay the lesser of the assigned dispensing fee or the submitted dispensing fee;
(b) Medicaid will only pay one dispensing fee per 24 days per covered outpatient drug per pharmacy.
(4) Medicaid will pay the lesser of the sum of the allowed amount for the covered outpatient drug and dispensing fee or the billed charges.
(5) Immunizations provided to Medicaid clients who are at least 19 years of age will be paid for the cost of the immunization plus a dispensing fee. Medicaid will pay the lesser of the allowed or submitted charges.
(6) Immunizations provided to Medicaid clients who are 18 years old or younger will only be eligible for a dispensing fee with no reimbursement for the immunization. Immunizations for Medicaid clients who are 18 years old or younger must be obtained through the Vaccines for Children program.
(7) Blood glucose test strips listed as preferred on the Utah Medicaid Preferred Drug List will be reimbursed at the lesser of the Wholesale Acquisition Cost with no dispensing fee or the billed charges.
(8) In accordance with the Utah Medicaid State Plan, the Department may only reimburse a single-contracted provider for the purchase of hemophilia clotting factor.
(1) Medicaid clients, or their representatives, must receive counseling that fulfills the requirements of 42 U.S.C. 1396r-8 each time a covered outpatient medication is dispensed.
(2) Counseling is not required if a Medicaid client, or their representative, refuses the offer to counsel.
(3) The offer to counsel must be documented and producible upon request.
A new drug product, including a new size or strength of an existing approved product, may be reviewed by the DUR Board to determine whether the drug should be subject to restrictions or limitations. New drugs may be withheld from coverage for no more than twelve weeks while restrictions or limitations are being evaluated.
Medicaid covers over-the-counter drugs when the drug is listed on the Utah Medicaid Over-the-Counter Drug List attachment to the Pharmacy Services Provider Manual, incorporated by reference in Section R414-1-5.
(1) Compounded non-sterile prescriptions are a covered benefit if at least one ingredient is a covered-outpatient drug that would otherwise qualify for coverage.
(2) Compounded sterile prescriptions are a covered benefit if at least one ingredient is a covered-outpatient drug that would otherwise qualify for coverage, and is prepared by a pharmacy that has certified to Utah Medicaid that it adheres to the United States Pharmacopeia/National Formulary chapter <797> standard, and tests the final product for sterility, potency and purity.
R414-60-12. Provider-Administered Long-Acting Injectable Antipsychotic Drugs and Drugs for the Treatment of Opioid Use Disorders.
A pharmacy may bill Medicaid for any covered, provider-administered drug not directly dispensed to a patient for a long-acting injectable antipsychotic drug or for the treatment of an opioid use disorder. The pharmacy may only release the drug to the administering provider or the provider's staff for treatment.
May 1, 2018
April 28, 2017
For questions regarding the content or application of rules under Title R414, please contact the promulgating agency (Health, Health Care Financing, Coverage and Reimbursement Policy). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.