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South Carolina Department of Health and Human Services Post Office Box 8206 Columbia, South Carolina 29202-8206 www.scdhhs.gov November 27, 2013 MB# 13-060 TO: MEDICAID BULLETIN Providers Indicated Phys Dent MC Hosp Med Clin MHRC HH Pharm SUBJECT: I. Drug List Update II. Exceptions to Prescription Limit III. Update to Synagis (palivizumab) Reimbursement IV. Brand Medications V. Certificate of Medical Necessity for Home Infusion Pharmacies I. Drug List Update The following revisions to the South Carolina Department of Health and Human Services (SCDHHS) Drug List (PDL) are effective with dates of service on or after January 1, 2014: ANTIPARASITICS, TOPICAL PERMETHRIN, OTC EURAX, CREAM/LOTION ULESFIA LINDANE PERMETHRIN 5% CREAM MALATHION SKLICE NATROBA OVIDE SPINOSAD Added as Added as

Page 2 CREON PANCRELIPASE ULTRESA ZENPEP PANCREATIC ENZYMES PANCREAZE PERTZYE VIOKACE Added as INVOKANA SODIUM-GLUCOSE TRANSPORTER 2 (SGLT2) INHIBITORS PA required if no claim for metformin in history. ANTIFUNGALS, TOPICAL CICLOPIROX, CREAM/SOLUTION/SUSP BENSAL HP CLOTRIMAZOLE, CREAM/SOLUTION (RX) CNL 8 KIT CLOTRIMAZOLE/BETAMETHASONE, CREAM/LOTION CICLODAN ECONAZOLE CICLOPIROX, KIT/GEL/SHAMPOO KETOCONAZOLE, CREAM/SHAMPOO ERTACZO NYSTATIN, CREAM/OINTMENT EXELDERM NYSTATIN/TRIAMCINOLONE, CREAM/OINTMENT EXTINA KETOCONAZOLE FOAM KETODAN LOPROX LOTRISONE CREAM MENTAX NAFTIN NIZORAL SHAMPOO NYSTATIN POWDER OXISTAT PEDIPIROX-4 PEDIADERM AF PENLAC VUSION XOLEGEL Added as Added as

Page 3 GLUCOCORTICOIDS, ORAL BUDESONIDE EC DEXAMETHASONE ELIXIR CORTEF DEXAMETHASONE INTENSOL CORTISONE DEXPAK DEXAMETHASONE ENTOCORT EC HYDROCORTISONE FLO-PRED METHYLPREDNISOLONE MEDROL ORAPRED/ORAPRED ODT (Covered for ages 0-12 only) MILLIPRED PREDNISOLONE SOLN RAYOS TABLET DR PREDNISOLONE SODIUM PHOSPHATE PREDNISONE INTENSOL PREDNISONE VERIPRED 20 ZEMA-PAK Added as Added as ADDERALL XR AMPHETAMINE SALT COMBO DEXMETHYLPHENIDATE IR DEXTROAMPHETAMINE DEXTROAMPHETAMINE SR FOCALIN XR * INTUNIV ** METADATE CD METHYLPHENIDATE METHYLPHENIDATE ER/SR QUILLIVANT XR ** RITALIN LA * STRATTERA VYVANSE * ATTENTION DEFICIT HYPERACTIVITY DISORDER (ADHD) AGENTS ADDERALL AMPHETAMINE SALTS COMBO XR CONCERTA DAYTRANA DESOXYN DEXEDRINE DEXTROSTAT FOCALIN METHAMPHETAMINE METHYLIN CHEW/SOLUTION METHYLPHENIDATE LA PROCENTRA SOLN/DEXTROAMPHET ZENZEDI Added as *Generic Agents considered first line when appropriate ** for ages 6 years and older

Page 4 OXYBUTYNIN OXYTROL TRANSDERMAL TOVIAZ VESICARE BLADDER RELAXANTS, ANTISPASMODICS DETROL DETROL LA DITROPAN XL ENABLEX FLAVOXATE GELNIQUE TRANSDERMAL MYBETRIQ SANCTURA SANCTURA XR TOLTERODINE TROSPIUM TROSPIUM ER Changed to The list above only reflects changes to the Drug List (PDL). To view the complete Drug List (PDL), please refer to our website http://southcarolina.fhsc.com. Prescribers are strongly encouraged to write prescriptions for "preferred" products. However, if a prescriber deems that a patient s clinical status requires therapy with a PA-required drug, the prescriber (or his/her designated office personnel) is responsible for initiating the PA request. A prospective, approved PA request will prevent rejection of prescription claims at the pharmacy due to the PA requirement. All PA requests should be submitted via WebPA, telephone, or fax to the Magellan Medicaid Administration Clinical Call Center by the prescriber or the prescriber s designated office personnel. To access the WebPA tool, visit http://southcarolina.fhsc.com. The toll-free telephone and fax numbers for the Clinical Call Center are 866-247-1181 and 888-603-7696, respectively. The Magellan Medicaid Administration Clinical Call Center telephone number is reserved for use by healthcare professionals and should not be provided to beneficiaries. (Magellan Medicaid Administration s SC Medicaid beneficiary call center telephone number for Pharmacy Services is 800-834-2680. Providers may furnish the beneficiary call center telephone number to Medicaid beneficiaries for Pharmacy Services-related issues only.) A pharmacy claim submitted for a PA-required product that has not been approved for Medicaid reimbursement will reject. If this occurs, the pharmacist should contact the prescriber so that a determination can be made regarding whether a drug not requiring PA is clinically appropriate for the patient. Questions regarding the PDL should be directed to Magellan Medicaid Administration s Call Center at 866-254-1669.

Page 5 II. Exceptions to Prescription Limit In an effort to encourage adherence to high-value medications, SCDHHS will exempt the following classes of medications from the monthly prescription limit effective January 1, 2014. Claims submitted for medications in these classes after January 2, 2014 will not accumulate to the base prescription limit of four (4) claims or the override limit of three (3) claims. Pharmacies need not submit a 5 in the Prior Authorization Type Code field for these claims to pay. Drug classes exempted from the prescription limit include: Diabetic Therapies (Insulin, metformin, sulfonylureas, thiazolidinediones, DPP-4 inhibitors, GLP-1 receptor antagonists). Cardiovascular Medications (Statins and other lipid lowering agents, antihypertensives, diuretics, antiarrhythmics, anticoagulants). Behavioral Health Medications (Antipsychotics, antidepressants). Anticonvulsants Systemic Antibiotics and Antivirals A complete list of the specific medications included will be available at http://southcarolina.fhsc.com. SCDHHS will continue to evaluate additional medication classes, and other high value medication classes may be added in the future. III. Update to Synagis (palivizumab) Reimbursement SCDHHS has updated the reimbursement rate for Synagis (palivizumab) for the 2013-2014 respiratory syncytial virus (RSV) season to Average Wholesale Price (AWP) minus 16%. The new rate for the 100mg vial will be $2,488.43 and $1,317.82 for the 50mg vial. This rate will be applied to all claims submitted for dates of service on or after October 15, 2013. Future changes to the Synagis reimbursement rate will be communicated via the standard fee schedule update process and posted at www.scdhhs.gov. SCDHHS will continue to cover Synagis only in accordance with the most recent edition of the American Academy of Pediatrics (AAP) guidelines for dates of service October 15 through March 31 every year.

Page 6 IV. Brand Medications Effective with dates of service on or after January 1, 2014, SCDHHS will no longer require that the brand medication be dispensed when a generic is available for the following medications: Avapro & Avalide Diovan HCT Kadian Lescol Phoslo Prograf Tricor Valtrex V. Certificate of Medical Necessity for Home Infusion Pharmacies Effective for dates of service on or after January 1, 2014, home infusion pharmacies are no longer required to obtain a Medicaid Certificate of Medical Necessity (MCMN) for the following services, so long as the pharmacy obtains a valid prescription that includes the diagnosis for which therapy is being provided. Supplies or per diems related to IV/parenteral drug administration Parenteral or enteral nutrition The announcements in this Bulletin apply to services provided to beneficiaries who are enrolled in fee-for-service Medicaid or a Medical Home Network (MHN). Questions regarding specific authorization and coverage of this service by one of the Medicaid Managed Care Organizations (MCOs) should be directed to the managed care plan. Claims for participants enrolled in either a Medical Homes Network or the fee-for-service program should be billed directly to Medicaid. If you have any questions regarding this policy, please contact the Provider Service Center at (888) 289-0709. Thank you for your continued support of the South Carolina Healthy Connections Medicaid Program. /s/ Anthony E. Keck Director