Medicare Benefit Policy Manual (Pub. 100-02), Ch. 9 § 30.1
Drugs and Biologicals Coinsurance
30.1 - Drugs and Biologicals Coinsurance
(Rev. 188, Issued: 05-01-14; Effective: 08-04-14; Implementation: 08-04-14)
Hospices are to provide all drugs and biologicals for the palliation and management of
pain and symptoms of a patient’s terminal illness and related conditions. An individual is
liable for a coinsurance payment for each palliative drug and biological prescription
furnished by the hospice while the individual is receiving routine home care or
continuous home care. The individual is not liable for any coinsurance for hospice-
related drugs or biologicals provided while he or she is receiving general inpatient care or
respite care.
The amount of coinsurance for each prescription approximates 5 percent of the cost of the
drug or biological to the hospice, determined in accordance with the drug copayment
schedule established by the hospice, except that the amount of coinsurance for each
prescription may not exceed $5.00. The cost of the drug or biological may not exceed
what a prudent buyer would pay in similar circumstances. The drug copayment schedule
must be periodically reviewed for reasonableness and approved by the A/B MAC (HHH)
before it is used.