The Centers for Medicare and Medicaid Services announced some pending changes for Medicare Part B regarding biosimilars. Starting on January 1, 2018, newly approved biosimilar products with a common reference product will no longer be grouped into the same billing code – instructions for the new codes will be issued by CMS shortly.
The complete CMS announcement and link is below. United Rheumatology will continue to follow the issue and provide updates.
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Link to CMS: https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Part-B-Drugs/McrPartBDrugAvgSalesPrice/Part-B-Biosimilar-Biological-Product-Payment.html
Part B Biosimilar Biological Product Payment and Required Modifiers
Dates of Service on or after April 1, 2018
Medicare Part B policy changes for biosimilar biological products were discussed in the CY 2018 PFS final rule [See Related Links section below]. Effective January 1, 2018, newly approved biosimilar biological products with a common reference product will no longer be grouped into the same billing code. Instructions for new codes for biosimilars that are currently grouped into a common payment code and the use of modifiers will be issued shortly. This webpage will be updated when the instructions are released.
Dates of Service prior to April 1, 2018
In the 2016 Physician Fee Schedule Final Rule, CMS updated the regulation text found at 42 CFR 414.904(j) to make clear that effective January 1, 2016, the payment amount for a biosimilar biological drug product is based on the average sales price of all NDCs assigned to the biosimilar biological products included within the same billing and payment code. In general, this means that CMS will group biosimilar products that rely on a common reference product’s biologics license application into the same payment calculation, and these products will share a common payment limit and HCPCS code.
In order to provide CMS with the ability to track claims payment and to develop a better understanding of the use of specific biosimilar products in Medicare Part B, claims for separately paid biosimilar biological products will be required to include a modifier that identifies the manufacturer of the specific product. Modifiers will be used to distinguish between biosimilar products that appear in the same HCPCS code but are made by different manufacturers. CMS will issue HCPCS codes for biosimilar biological products and will issue and assign modifiers to specific biosimilar products in each HCPCS code. The assignments will be published on this webpage. The use of the modifiers on claims for biosimilar products that appear on this webpage is mandatory. However, if a HCPCS code and corresponding biosimilar modifier(s) do not appear on the quarterly update, then a modifier is not required to appear on claims for the code. New biosimilar products that are not adequately described by an existing unique HCPCS code may be billed under a miscellaneous code or “not otherwise classified” code such as J3590. Similarly, a “not otherwise classified” code may also be used in situations where an existing biosimilar HCPCS code is associated with a corresponding modifier that is not yet in effect in the claims processing system. The manufacturer modifier is not required on claims that use a miscellaneous HCPCS code.
Please note that the determination of the payment amount for biosimilars is not affected by the use of a modifier.
The table below lists the current biosimilar HCPCS Codes, the product(s) that are associated with each code and the corresponding required modifier that is used to identify the product. The table will be updated quarterly when new permanent HCPCS codes and modifiers are available for biosimilar products that appear on the ASP price file.
1. Biosimilar HCPCS Code: Q5101 Injection, Filgrastim (G-CSF), Biosimilar, 1 microgram
Product Brand names: Zarxio
Corresponding Required Modifier: ZA – Novartis/Sandoz
2. Biosimilar HCPCS Code: Q5102 Injection, infliximab, biosimilar, 10 mg
Product Brand names: Inflectra
Corresponding Required Modifier: ZB – Pfizer/Hospira
3. Biosimilar HCPCS Code: Q5102 Injection, infliximab, biosimilar, 10 mg
Product Brand names: Renflexis
Corresponding Required Modifier: ZC –Merck/Samsung Bioepis (see note below)
Note: The ZC modifier will become effective, that is, valid for claims submitted beginning October 1, 2017 and applies retroactively to dates of service on or after July 24, 2017.