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January 2021

Blue Cross doesn’t reimburse providers for experimental drugs

Blue Cross Blue Shield of Michigan and Blue Care Network won’t reimburse providers for experimental drugs, effective Jan. 1, 2021. This applies to all claims submitted for Blue Cross commercial, Medicare Plus Blue℠, BCN commercial and BCN Advantage℠ members.

When you bill these types of drugs on a UB-04 for inpatient services, use the correct revenue code and modifiers for experimental drug usage. Use revenue code 0256 – experimental drugs, along with the appropriate Advance Beneficiary Notice of Noncoverage modifier (GA, GX, GY, GZ).

Health care providers may not bill members for such services unless, prior to the services, all these requirements are met:

  • You provide the member with a cost estimate of the service.
  • You have the member confirm in writing that he or she assumes financial responsibility for the service.

The member understands that Blue Cross won’t reimburse the provider for the service.

No portion of this publication may be copied without the express written permission of Blue Cross Blue Shield of Michigan, except that BCBSM participating health care providers may make copies for their personal use. In no event may any portion of this publication be copied or reprinted and used for commercial purposes by any party other than BCBSM.

*CPT codes, descriptions and two-digit numeric modifiers only are copyright 2020 American Medical Association. All rights reserved.