Oregon Secretary of State

Department of Consumer and Business Services

Workers' Compensation Division - Chapter 436

Division 9
OREGON MEDICAL FEE AND PAYMENT

436-009-0090
Pharmaceutical

(1) General.

(a) Unless otherwise provided by an MCO contract, prescription medications do not require prior approval even after the patient is medically stationary.

(b) When a provider prescribes a brand-name drug, pharmacies must dispense the generic drug (if available), according to ORS 689.515. However, a patient may insist on receiving the brand-name drug and either pay the total cost of the brand-name drug out of pocket or pay the difference between the cost of the brand-name drug and generic to the pharmacy.

(c) Unless otherwise provided by MCO contract, the patient may select the pharmacy.

(2) Pharmaceutical Billing and Payment.

(a) Pharmaceutical billings must contain the National Drug Code (NDC) to identify the drug or biological billed. This includes compounded drugs, which must be billed by ingredient, listing each ingredient’s NDC. Ingredients without an NDC are not reimbursable.

(b) All bills from pharmacies must include the prescribing provider’s NPI or license number.

(c) Unless otherwise provided by contract, insurers must pay medical providers for prescription medication, including injectable drugs, at the medical provider’s usual fee, or the maximum allowable fee, whichever is less. However, drugs provided by a hospital (inpatient or outpatient) must be billed and paid according to OAR 436-009-0020.

(d) Unless directly purchased by the worker (see OAR 436-009-0025(5)), the maximum allowable fee for pharmaceuticals is calculated according to the following table: [See attached table.]

(e) Insurers must use a nationally published prescription pricing guide for calculating payments to the provider, e.g., RED BOOK or Medi-Span.

(3) Dispensing by Medical Service Providers.

(a) Except in an emergency, prescription drugs for oral consumption dispensed by a physician’s or authorized nurse practitioner’s office are compensable only for the initial supply to treat the patient, up to a maximum of 10 days.

(b) For dispensed over-the-counter medications, the insurer must pay the retail-based fee.

[ED. NOTE: To view attachments referenced in rule text, click here for PDF copy.]

Statutory/Other Authority: ORS 656.726(4)
Statutes/Other Implemented: ORS 656.248, ORS 656.252 & ORS 656.254
History:
WCD 1-2023, amend filed 03/09/2023, effective 04/01/2023
WCD 1-2016, f. 3-7-16, cert. ef. 4-1-16
WCD 3-2015, f. 3-12-15, cert. ef. 4-1-15
WCD 3-2014, f. 3-12-14, cert. ef. 4-1-14
WCD 1-2012, f. 2-16-12, cert. ef. 4-1-12
WCD 1-2011, f. 3-1-11, cert. ef. 4-1-11
WCD 1-2009, f. 5-22-09, cert. ef. 7-1-09
WCD 5-2008, f. 12-15-08, cert. ef. 1-1-09
WCD 3-2008(Temp), f. & cert. ef. 7-7-08 thru 1-2-09
WCD 1-2008, f. 6-13-08, cert. ef. 7-1-08
WCD 3-2006, f. 3-14-06, cert. ef. 4-1-06
WCD 2-2005, f. 3-24-05, cert. ef. 4-1-05
WCD 3-2004, f. 3-5-04 cert. ef. 4-1-04
WCD 6-2003, f. 5-28-03, cert. ef. 7-1-03
WCD 3-2002, f. 2-25-02 cert. ef. 4-1-02
WCD 2-2001, f. 3-8-01, cert. ef. 4-1-01
WCD 9-1999, f. 5-27-99, cert. ef. 7-1-99


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