Knowledge Base Article

Self-Administered Drugs Used as Supplies

Question:
Is it ever appropriate to bill for self-administered drugs (SADs) as covered services?

Answer:
Yes, when these drugs function as supplies. This occurs 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

For example, drugs used as supplies would include:

• sedatives administered to prepare a patient for a procedure
• antibiotic ointment placed on a wound/incision at the completion of a procedure.

See the July 2012 OPPS update (MLN Matters MM7847) for more examples of when self-administered drugs would and would not be separately billable to Medicare. Drugs paid as supplies should be reported under the revenue code associated with the cost center under which the hospital accumulates the costs for the drugs (most hospitals use revenue code 0250).