June 20, 2005

Dear Pharmacy Provider:

Attached is the complete, most current listing of drugs on the Medicaid Prior Authorization (PA) Process' Preferred Drug List (PDL) "05-01." The listing includes preferred drugs and those drugs requiring prior authorization. This list will be effective July 1, 2005.

The PA process, in accordance with the program's "Continuity of Care" policy, does not impact original prescriptions (or refills) issued by a prescribing practitioner prior to effective PA dates of drugs as they are added to the PA process as long as they are within the 5 refills and 6-month program limits. An educational alert will notify the pharmacist that prescriptions (and their refills) will require a new prescription and prior authorization, if the prescription life exceeds six months or the refill exceeds the 5 refill limit. The educational alert will state, "NEW RX WILL REQUIRE PA AFTER (DATE)."

Information on the Prior Authorization process, including the PDL and Prior Authorization Request Form (copy is attached, Form RXPA01), is also available on the Louisiana Medicaid website (www.lamedicaid.com). This website will be updated when changes (additions or deletions) are made to the PDL. The program may also utilize the provider remittance advices to notify providers of PDL changes that must be implemented in short time frames.

The Department has received inquiries that drug products requiring PA are not reimbursable by Medicaid. Medicaid does reimburse for drug products requiring prior authorization when the prior authorization process is followed. Additionally, should a claim deny because a PA is required, you may want to 1) verify that the PA was actually obtained and the dates of service for the PA; 2) verify that the filling date on the claim is subsequent to the start date of the PA. (Remember: PAs are not retroactive); and 3) call the POS help desk at 1-800-648-0790 for further assistance.

In regards to the PDL/PA and Over The Counter (OTC) drugs, Loratadine is the ONLY OTC item covered on the PDL effective July 1, 2005. Medicaid covers a limited number of OTC products when a prescription is prescribed by the prescribing practitioner. Medicaid also requires the pharmacist bill using the NDC which is dispensed. OTC items should not be billed with the NDC for the legend product.

In an effort to improve the efficiency of the retroactive prior authorization process, the Louisiana Medicaid Pharmacy Benefits Management Section has implemented an electronic method for submitting claims which need retroactive prior authorization. Previously, pharmacy providers were required to submit these claims on paper directly to Medicaid for manual determination of retroactive eligibility and overrides.

Thank you for your continued cooperation. We appreciate your participation in the Medicaid Program.


Ben A. Bearden
Medicaid Director


Attachments (2)

The above letter and the Preferred Drug List are also available in PDF format on the Downloadable Forms and Files page.