Medicare Claims Processing Manual (Pub. 100-04), Ch. 19 § 90.1.1
Licensure to Dispense Drugs
90.1.1 - Licensure to Dispense Drugs
(Rev. 1040, Issued: 08-25-06, Effective: 09-11-06, Implementation: 09-11-06)
In order to bill drugs to the DME MACs, the supplier must be a pharmacy. States may
not regulate the qualifications of Federal employees who are carrying out their authorized
Federal activities within the scope of their employment. However, IHS employees are not
subject to state licensure laws and IHS pharmacy departments are not licensed by
individual states. IHS pharmacies are currently licensed in accordance with Federal
statutes and regulations and the IHS facility is accredited in accordance with statutes and
regulations. IHS pharmacy departments agree to use the IHS facility’s DEA number
consistent with Federal law. Therefore, IHS pharmacies are “deemed” as being licensed
and therefore may bill the DME MACs for those drugs the DME MACs cover. IHS
pharmacies are considered IHS suppliers.