Medicare Claims Processing Manual (Pub. 100-04), Ch. 17 § 100.3
Application of Local Medical Review Policies
100.3 - Application of Local Medical Review Policies
(Rev. 866, Issued: 02-17-06, Effective: 07-01-06, Implementation: 07-03-06)
A/B MACs (B) and/or Program Safeguard Contractors shall apply all Local Coverage
Determination (LCD) policies and National Coverage Determination (NCD) policies to
the administration and no-pay drug code lines on the CAP claims.
Should it be determined that a drug administration or drug code service line does not
meet the requirements of the LCD, the A/B MAC (B) shall follow current processes to
determine how to adjudicate the related services.
If appropriate, the A/B MACs (B) shall include messages on the MSN and RA to indicate
which LCD was applied.
The A/B MACs (B) shall also apply all regular edits to the administration and no-pay
drug lines and send appropriate denial messages.