130 CMR 406.402
Definitions
The following terms used in 130 CMR 406.000 have the meanings given in 130 CMR
406.402, unless the context clearly requires a different meaning. The reimbursability of services
defined in 130 CMR 406.000 is not determined by these definitions, but by application of
regulations elsewhere in 130 CMR 406.000 and in 130 CMR 450.000: Administrative and
Billing Regulations.
340B-covered Entities. Facilities and programs eligible to purchase discounted drugs through a
program established by Section 340B of Public Health Law 102-585, the Veterans Health Care
Act of 1992.
340B Drug Pricing Program. A program established by Section 340B of Public Health Law
102-585, the Veterans Health Care Act of 1992.
Compounded Drug. Any drug, excluding cough preparations, in which two or more active
ingredients, at least one of which is a drug, are extemporaneously mixed by a registered
pharmacist.
Controlled Substance. A drug listed in Schedule II, III, IV, V, or VI of the Massachusetts
Controlled Substances Act (M.G.L. c. 94C).
Durable Medical Equipment Specialty. A designation by the MassHealth agency for pharmacy
providers whose primary business is not providing durable medical equipment but that
nevertheless are qualified pursuant to the applicable requirements of 130 CMR 409.000: Durable
Medical Equipment Services to provide durable medical equipment not listed on the Non-drug
Product List to MassHealth Members.
Drug. A substance as defined by the Food, Drug, and Cosmetic Act, containing one or more
active ingredients in a specified dosage form and strength. Each dosage form and strength is a
separate drug.
Electronic Prescription. A prescription transmitted electronically in compliance with applicable
state and federal law.
Health Insurer. A private or public entity, including Medicare, that has a health plan or policy
under which it pays for medical services provided to a member. An endorsed discount card issued
in accordance with Section 1860D-31(a) of the Social Security Act is not considered a health
insurance plan or policy.
Interchangeable Drug Product. A product containing a drug in the same amounts of the same
active ingredients in the same dosage form as another product with the same generic or chemical
name that has been determined to be therapeutically equivalent (that is, “A”-rated) by the Food
and Drug Administration Center for Drug Evaluation and Research (FDA CDER), or by the
Massachusetts Drug Formulary Commission.
MassHealth Drug List. A list of commonly prescribed drugs and therapeutic class tables
published by MassHealth. The MassHealth Drug List specifies the drugs that are payable under
MassHealth. The list also specifies which drugs require prior authorization. Except for drugs and
drug therapies described in 130 CMR 406.413(B), any drug that does not appear on the
MassHealth Drug List requires prior authorization, as otherwise set forth in 130 CMR 406.000.
Multiple-source Drug. A drug marketed or sold by two or more manufacturers or labelers, or a
drug marketed or sold by the same manufacturer or labeler under two or more different names.
Non-drug Product List. A section of the MassHealth Drug List comprised of those products not
classified as drugs (e.g., blood testing supplies) that are payable by the MassHealth agency
through the Pharmacy Program. Except as designated by Pharmacy Facts, provider bulletin, or
other written issuance from the MassHealth agency, payment for these items is in accordance
with rates published in EOHHS regulations at 101 CMR 322.00: Rates for Durable Medical
Equipment, Oxygen, and Respiratory Therapy Equipment and 101 CMR 317.00: Rates for
Medicine Services. The MassHealth Non-drug Product List also specifies which of the included
products require prior authorization.
Over-the-counter Drug. Any drug for which no prescription is required by federal or state law.
These drugs are sometimes referred to as nonlegend drugs. The MassHealth agency requires a
prescription for both prescription drugs and over-the-counter drugs (see 130 CMR 406.411(A)).
Oxygen and Respiratory Therapy Equipment Specialty. Designation by the MassHealth agency
for pharmacy providers whose primary business is not the provision of oxygen and respiratory
therapy equipment but that nonetheless are qualified pursuant to the applicable requirements of
130 CMR 427.000: Oxygen and Respiratory Therapy Equipment (excepting any requirement that
the provider primarily engage in the business of supplying oxygen and respiratory therapy
equipment to the public) to provide oxygen and respiratory therapy equipment not listed on the
Non-drug Product List to MassHealth Members.
Pharmacy Covered Professional Services List. A section of the MassHealth Drug List comprised
of those professional services that are payable by the MassHealth agency through the Pharmacy
Program.
Pharmacy Online Processing System (POPS). The online, real-time computer network that
adjudicates pharmacy claims, incorporating prospective drug utilization review, prior
authorization, and member eligibility verification.
Prescription Drug. Any drug for which a prescription is required by applicable federal or state
law or regulation, other than MassHealth regulations. These drugs are sometimes referred to as
legend drugs.
Retail Establishment. A physical place of business at which the provider dispenses prescription
and over-the-counter drugs; a business conducted by mail, telephone, the internet, or any other
remote means does not constitute a “retail establishment.”
Step Therapy Protocol. A utilization management policy or program that establishes the specific
sequence in which a prescription drug for a specified medical condition is covered by the
MassHealth agency.