Medical Drug Management

Medical Mutual recognizes that a comprehensive approach to managing specialty drugs, including high cost oncology drugs, covered under the medical and pharmacy benefits is critical to all of our customers. Many new specialty drugs have been introduced to the marketplace and many of these specialty drugs are being administered to patients at their doctor’s office, a hospital outpatient facility, or stand-alone outpatient infusion center. These are not the types of drugs that could be obtained at a drug store. To help manage these drugs, Medical Mutual implemented a Medical Drug Management (MDM) program.

Components of our MDM program include:

  • Requiring a National Drug Code (NDC) on medications that require prior authorization
  • Editing outpatient and professional claims to ensure a medication has been approved and the dose administered matches the approval
  • Application of maximum daily dose edits on a number of targeted medications
  • Site of care management. Site of care management requires a number of targeted medications (e.g., immune globulins, Remicade, Soliris) to be administered in a non-hospital facility based location (i.e., home, provider’s office or ambulatory infusion site) unless certain medical necessity criteria are met.

As a result of the MDM program, we realized for our clients a medical specialty drug savings of more than $10 million during the first year of the program. Approximately 34 percent of the specialty drug spend under the medical benefit are oncology drugs. This savings is attributed to specialty drugs that were administered in a doctor’s office. Effective February 2015, we applied this program to specialty drugs administered at a hospital outpatient facility and stand-alone outpatient infusion center, which is where the remaining specialty drugs are being delivered on an outpatient basis.

Medical Mutual will continue to enhance our specialty drug management program to ensure we are managing our client’s health dollars to address market trends, new specialty drugs, and customer utilization

Site of Care Management Program

Select specialty medications that are already subject to prior authorization requirements will be subject to site of care management beginning March 1, 2016. Previously, it was announced the program would take effect on January 15, 2016. Coverage for impacted medications is restricted to administration by home infusion, at a provider’s office or at an ambulatory infusion center.

Infusions administered in a hospital setting are not eligible for reimbursement unless the provider receives prior approval from Medical Mutual that the medical necessity criteria have been met.

New requests and renewals of a previously approved medication will be subject to site of care management. Please note the site of care criteria will not apply to members under the age of 18. The standard prior authorization will apply, but the site of care questions will not.

You can view the list of medications subject to site of care management or view the list of medications requiring prior approval (including those subject to site of care management) or considered investigational.

Medicare Part B Step Therapy Program

Medical Mutual requires review of some medical benefit drugs (primarily injectables and biologics) under step therapy requirements. These step therapy requirements will be in addition to already-existing, non-step therapy related policies and review requirements for Medicare Advantage members.

Please note that step therapy requirements do not apply to members who are already receiving active treatment with a non-preferred drug. Step therapy implementation will be administered in accordance with all guidance from the Centers for Medicare & Medicaid Services (CMS).

Furthermore, Medicare Advantage members subject to step therapy requirements have the right to ask for an exception or to appeal a request that was denied due to step therapy requirements.

View the list of medications subject to step therapy or view the list of medications requiring prior approval (including those subject to site of care management) or considered investigational.

Medical Drug Prior Approval Update

For more information on prescription medications requiring prior approval or that are considered investigational, and to view a complete list of our Corporate Medical Policies, visit our Corporate Medical Policies page.

When these medications are provided under a member’s prescription drug benefit, please contact the pharmacy benefit manager at the number on the member’s identification card for prior approval requirements.


Additional Resources

Magellan Rx

Medical Mutual is pleased to partner with Magellan Rx, to manage prior approval requests for medications covered under the medical benefit.

Use Magellan Rx's secure provider portal to:

  • Submit non-urgent requests for prior approval
  • Check on the status of submitted requests
  • Submit a renewal on a previously approved request

The following reference tools are available:

As an alternative to using Magellan Rx, Providers may also submit the Prior Approval Form, which is linked below, to request prior approval for medical drugs. This is a global form, and it replaces the previous process that required use of forms that were specific to each drug.

Prior Approval & Investigational Services 

Prior Approval Form

NDC on Professional Claims

Locate the NDC submission field on the CMS-1500.

NDC on Institutional Claims

Locate the NDC submission field on the UB-04.