Claims Adjudication and Insurance Cards
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Questions and Answers

What is the main purpose of claims adjudication?

  • To fill prescriptions for patients
  • To provide patients with prescription medications
  • To collect patient payments at the pharmacy
  • To evaluate a medical claim submitted to insurance (correct)
  • Which of the following is NOT typically an outcome of claims adjudication?

  • Accepted
  • Pending Review
  • Approved (correct)
  • Denied/Declined
  • What does the Rx BIN on a prescription insurance card do?

  • Narrows a claim to the specific insurance plan
  • Identifies the insured individual
  • Routes a claim toward the correct insurance (correct)
  • Counters fraud in prescription claims
  • During which step of the prescription pathway does the pharmacist verify prescription accuracy?

    <p>Input Verification</p> Signup and view all the answers

    What is a potential reason for the NCPDP reject code 50?

    <p>Non-Matched Pharmacy Number</p> Signup and view all the answers

    Which Medicare part is primarily used to bill for specific prescription items?

    <p>Part B</p> Signup and view all the answers

    Which of the following is an example of a Medicare Part B coverage?

    <p>Flu vaccines</p> Signup and view all the answers

    What happens in the 'Filling' step of the prescription pathway?

    <p>The pharmacy technician fills the prescription based on adjudication outcomes</p> Signup and view all the answers

    Why is it important for patients to present their prescription insurance card?

    <p>It may not contain information needed for prescription processing</p> Signup and view all the answers

    What role do pharmacy technicians play during the input stage of the prescription pathway?

    <p>They enter prescription information into the pharmacy management system</p> Signup and view all the answers

    What is a plan exclusion in an insurance policy?

    <p>A provision that eliminates coverage for certain medications or classes of medications.</p> Signup and view all the answers

    Which of the following medications are often excluded as a class from insurance coverage?

    <p>Weight loss agents.</p> Signup and view all the answers

    What does prior authorization (PA) require from a health plan?

    <p>Approval before a medication or service is covered.</p> Signup and view all the answers

    What typically happens when a prescription's quantity exceeds the plan limit?

    <p>The prescription is rejected by the insurance plan.</p> Signup and view all the answers

    What is a common reason for a Drug Utilization Review (DUR) rejection?

    <p>Duplicate therapy with the same class of drugs.</p> Signup and view all the answers

    What must pharmacists do when they encounter clinical alerts during prescription verification?

    <p>Assess the alerts and decide on the necessity for override.</p> Signup and view all the answers

    When could a patient receive a 'Refill Too Soon' rejection?

    <p>If they attempt to refill medication before the eligible refill date.</p> Signup and view all the answers

    What are clinical alerts/warnings typically triggered by?

    <p>Potential safety concerns in prescription verification.</p> Signup and view all the answers

    What could happen if the cost of a prescription exceeds the maximum set by the insurance?

    <p>There may be a need for prior authorization or alternative medication.</p> Signup and view all the answers

    What is a common reason for a clinical alert regarding a drug-drug interaction?

    <p>Two or more drugs that may interfere with each other's safety or effectiveness.</p> Signup and view all the answers

    Study Notes

    Claims Adjudication

    • Claims adjudication is the payer's (insurance company's) process for evaluating medical claims.
    • Claims are often submitted electronically via auto-adjudication.
    • Auto-adjudication involves software automatically checking claims for errors and eligibility, then returning a payment amount.
    • Possible outcomes include acceptance or denial/declined claims.

    Insurance Cards

    • Member ID: A unique number identifying the insured individual.
    • Rx BIN (Bank Identification Number): Routes claims to the correct insurance company.
    • Rx PCN (Processor Control Number): Details the specific insurance plan within a company.
    • Rx Group: Identifies the associated employer plan.
    • Important Tip: Prescription insurance cards are often required, as medical cards might lack necessary information.
    • Medicare Part B: Handles prescription items not usually covered by other Medicare parts; often called the "Red, White, and Blue Card".
    • Medicare Part B Coverage Examples: Vaccines (flu, pneumonia, Hepatitis B, COVID-19). Diabetes testing supplies. Transplant drugs to suppress the immune system. Oral chemotherapy.

    Prescription Pathway

    • Step 1: Patient submits prescription.
    • Step 2: Pharmacy technician enters prescription information.
    • Step 3: Pharmacist verifies prescription input.
    • Step 4: Pharmacy submits claim to insurance electronically.
    • Step 5: Pharmacy fills the prescription based on the claim outcome.
    • Step 6: Pharmacist double-checks the filled prescription.

    Common NCPDP Reject Codes

    • 50 - Non-Matched Pharmacy Number: Rejection when the insurance isn't contracted with the pharmacy ("out-of-network"). Also for specialty drugs at non-specialty pharmacies.
    • 70 - Plan Exclusion: Insurance policy excludes coverage for certain drugs. Does not factor toward out-of-pocket maximum for the excluded drug. This means the drug isn't on the insurance formulary. Common examples for this include weight-loss agents.
    • 75 - Prior Authorization Required: Health plan requires approval for a medication before it is covered. Often needed for tier 2+ formulary medications. Formulary is a list of covered drugs, often tiered for cost and coverage levels.
    • 76 - Plan Limitations Exceeded: Insurance plan has a limit on quantity of certain drugs covered within a time frame; common for medications with strict dosing guidelines.
    • 78 - Cost Exceeds Maximum: Prescription cost exceeds a set insurance limit. May require a Prior Authorization or switching to a more affordable drug. Resolutions involve verifying claim processing accuracy and potentially discussing a lower cost alternative medication with the provider.
    • 79 - Refill Too Soon: Rejection for refills before the insurance allows it; the rejection gives the earliest eligible refill date. Pharmacists can sometimes override this, in consultation with insurance if needed.
    • 88 - Drug Utilization Review (DUR): Rejection requiring clinical pharmacist knowledge. Reasons for DUR rejection include duplicate therapy, overuse, drug-drug interactions, and drug-pregnancy interactions. Requires a comprehensive assessment of the patient's medications to ensure safety.

    Clinical Alerts and Warnings

    • Clinical alerts appear in pharmacy management systems during prescription verification, spotting potential safety concerns.
    • Pharmacists use professional judgment to override alerts when appropriate.
    • Example Alerts: Allergy alerts, drug-drug interaction alerts, duplicate therapy alerts, excessive dose alerts, high-risk medication alerts, pediatric dosing concerns, and Beers criteria warnings for older adults.

    Case Examples

    • Case #1: Allie Gator's prescription triggered a "75 Prior Authorization Required" rejection.
    • Case #2: Johnny Rose's prescription prompted an "Allergy (Codeine)" clinical alert due to documented allergy.
    • Case #3: Ryan Reynolds' prescription produced a "Drug Utilization Review (DUR)" and "Drug-Drug Interaction" clinical alert.

    Key Takeaways for Pharmacists

    • Responding to Alerts: Develop a systematic approach for evaluating and addressing clinical alerts, documenting actions taken.
    • Patient Communication: Explain rejections and clinical alerts to patients clearly.
    • Provider Communication: Communicate with prescribers effectively on prior authorizations, alternative therapies, and DUR resolution

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    Description

    This quiz covers the process of claims adjudication by insurance companies, including the auto-adjudication mechanism and outcomes of claims. Additionally, it introduces key terms related to insurance cards, such as Member ID, Rx BIN, and Medicare information, emphasizing their importance in handling medical claims.

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