The Centers for Medicare & Medicaid Services (CMS) has issued a change in policy regarding the use of the -JW modifier for discarded Part B drugs and biologicals.

The -JW modifier identifies “Drug amount discarded/Not administered to any patient.”

Effective Jan. 1, 2017, providers will be required to:

  • use the -JW modifier for claims with unused drugs or biologicals from single-use vials or single-use packages that are appropriately discarded (except those provided under the Competitive Acquisition Program (CAP) for Part B drugs and biologicals); and
  • document the discarded drug or biological in the patient’s medical record when submitting claims with unused Part B drugs or biologicals from single-use vials or single-use packages that are appropriately discarded

The -JW modifier is not used on claims for CAP drugs and biologicals.

CMS indicated it is revising this policy to require the uniform use of the -JW modifier for all claims with discarded Part B drugs and biologicals in order to more effectively identify and monitor medical billing and payment for discarded drugs and biologicals.