Third Question of the Day August 21, 2014 How many compounding pharmacies are violating this rule regarding pain pumps? If the doctor purchases the drugs then the state would have to allow office use and the drugs wouldn't be patient-specific or if they were wouldn't this raise other legal and ethical questions? Will a compounding pharmacy have to be registered as an outsourcing facility for this type of pain pump transaction to meet all applicable laws and regulations?

Pharmacies may not bill Medicare Part B for drugs furnished to a physician for administration to a Medicare beneficiary. When these drugs are administered in the physician’s office to a beneficiary, the only way these drugs can be billed to Medicare is if the physician purchases the drugs from the pharmacy. In this case, the drugs are being administered "incident to" a physician’s service and pharmacies may not bill Medicare Part B under the "incident to" provision.