Reviewed Jul 23, 2026 · maintained by Erin Rose · coverage re-verified against CMS quarterly
How Medicare covers physician-administered drugs
For drugs given in a clinic and billed under Medicare Part B, payment turns on the diagnosis. Each Medicare Administrative Contractor (MAC) publishes a Local Coverage Determination (LCD) and a companion Billing & Coding Article listing the exact covered ICD-10 codes for a drug’s J or Q code. Coverage can differ by MAC and change by quarter, so the list you bill against has to be the current article for your state. Every drug below links its covered-diagnosis list, its source article and date, and the ASP+6% reimbursement.
Medicare reference tools
Coverage policies at a glance
The drugs with a dedicated CMS Billing & Coding Article carry the most detailed, most citable Medicare coverage. The full 40-drug list is in the browser below.
| Drug | HCPCS | Covered ICD-10 | CMS Article / LCD | MAC |
|---|---|---|---|---|
| Rituximab | J9312 Q5115 Q5119 | 692 | A56380 / L35026 | Palmetto GBA |
| Denosumab (Prolia, Xgeva) | J0897 | 434 | A52399 / L33394 | Wellpoint Federal |
| Infliximab | J1745 Q5103 Q5104 | 406 | A56432 / L35677 | Palmetto GBA |
| Botox (Botulinum Toxin) | J0585 J0586 J0587 | 313 | A52848 / L33646 | National Government Services, Inc. |
| Immune Globulin (IVIG) | J1459 J1561 J1566 | 138 | A56786 / L35093 | Novitas Solutions, Inc. |
| Eculizumab | J1300 Q5140 Q5141 | 18 | A54548 | Wellpoint Federal |
| Omalizumab (Xolair) | J2357 | 17 | A52448 / L33394 | Wellpoint Federal |
Browse all 40 drugs
LCD, Billing & Coding Article, or NCD — which one governs?
A Local Coverage Determination (LCD) is your MAC’s policy on whether a drug is reasonable and necessary. The Billing & Coding Article attached to it holds the detail you actually bill against: the exact covered ICD-10 diagnoses and the HCPCS codes they apply to. A National Coverage Determination (NCD), where CMS has issued one, sets a floor that applies in every state. When you check whether a diagnosis is covered, you are reading the Article; the LCD is the policy behind it, and an NCD, if one exists, overrides both.
Why does coverage differ by MAC?
CMS contracts twelve A/B MAC jurisdictions to seven companies, and each sets its own local coverage. The same drug can carry a different covered-diagnosis list under Palmetto than under Novitas. That is why a claim that pays in one state is denied in another, and why the list you rely on must be the article for your MAC. If you are not sure which one governs your practice, start from the MAC lookup.
Frequently asked
How do I find the Medicare-covered diagnoses for a drug?
Open the drug's page here. It lists every covered ICD-10 code from the governing CMS Billing & Coding Article, grouped by condition, with the article ID and its revision date. Confirm the article that applies to your MAC.
Why was my Part B drug claim denied as not medically necessary?
Most often the ICD-10 diagnosis on the claim isn't in the covered list for that J-code, or the article for your MAC differs from the one you checked. Match the diagnosis to the covered list for your state and confirm the documentation supports medical necessity.
Does covered-diagnosis policy differ by state?
Yes. Part B drug coverage is set locally by each MAC, so a diagnosis covered in one jurisdiction may not be covered in another. Use the MAC lookup to find yours.
Is this the same as prior authorization?
No. Covered-diagnosis policy is about whether Medicare pays for a drug-and-diagnosis pairing at all. Prior authorization and step therapy are separate utilization-management requirements this reference does not cover.
Source & how this is maintained
- Source
- CMS Medicare Coverage Database (Local Coverage Articles and their LCDs) and, where no drug-specific policy exists, FDA-approved labeling. HCPCS J/Q and ICD-10-CM codes are public domain; CPT is AMA-copyrighted and intentionally omitted.
- Reviewed
- Jul 23, 2026; coverage data re-verified against CMS quarterly.
- Maintained by
- Erin Rose, Founder, under CareCost’s methodology and editorial policy. Corrections are logged on the Corrections page.
- Not advice
- General billing reference, not legal or billing advice. Always verify against the LCD/Article that applies to your MAC and patient.
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