Medicare Claims Processing Manual (Pub. 100-04), Ch. 17 § 100.2.1
CAP Required Modifiers
100.2.1 - CAP Required Modifiers
(Rev. 3721, Issued: 02-24-17, Effective: 05-25-17, Implementation: 05-25-17)
The A/B MAC (B) shall identify physicians who have elected CAP and will no longer
pay the physician for drugs under the ASP system that were obtained through CAP. A/B
MACs (B) shall continue to pay physicians for the administration of CAP drugs. Unless
claims for the CAP drugs include the no-pay (J1), furnish as written (J3) modifier, or
MSP (M2) modifier the claim will be denied.
When physicians submit a claim for a drug they have provided under the CAP without
the J1, J3, or MSP modifiers, the contractor shall use the following remittance advice
messages and associated codes when rejecting/denying claims under this policy. This
CARC/RARC combination is compliant with CAQH CORE Business Scenario Three.
Group Code: CO
CARC: 96
RARC: N348
MSN: 7.7
A/B MACs (B) shall treat as unprocessable CAP claims with the following invalid
modifier combinations on CAP claims:
J1 + J3 - invalid
J2 without a J1 - invalid
J2 + J3 - invalid
A/B MACs (B) shall treat as unprocessable claims received with invalid modifier
combinations.
The contractor shall use the following remittance advice messages and associated codes
when rejecting/denying claims under this policy. This CARC/RARC combination is
compliant with CAQH CORE Business Scenario Two.
Group Code: CO
CARC: 16
RARC: N519
MSN: N/A