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Pharmacy · PTCB

PTCB: Insurance and Third-Party Billing

Prior authorization, rejected claim codes, and third-party billing workflow concepts tested on the PTCB exam.

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PA (pharmacy billing)
Prior Authorization
What is prior authorization?
Insurer approval required before a specific medication will be covered
Who typically initiates a prior authorization request?
The prescriber's office
What is a common reason an insurer requires prior authorization?
The drug is non-formulary or high-cost
What is step therapy?
A requirement to try a lower-cost drug first before a more expensive one is covered
What is a formulary?
A list of drugs a health plan covers
BIN (claims billing)
Bank Identification Number
What is the purpose of the BIN number on an insurance card?
Routes the claim to the correct claims processor
What does PCN stand for on an insurance card?
Processor Control Number
What is the purpose of the group number on an insurance card?
Identifies the specific employer or plan group
What is the cardholder ID (member ID) used for?
Identifies the specific insured individual on a claim
NCPDP
National Council for Prescription Drug Programs
What does NCPDP reject code 75 mean?
Prior Authorization Required
What does NCPDP reject code 70 mean?
Product/Service Not Covered
What does NCPDP reject code 76 mean?
Plan Limitations Exceeded

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