Blue Review
A newsletter for contracting institutional and professional providers

October 2017

National Drug Code (NDC) Billing Update for Medicare Advantage Claims

Beginning Dec. 15, 2017, Blue Cross and Blue Shield of Illinois (BCBSIL) will activate edits to validate NDCs that are submitted on electronic and paper, professional and institutional Blue Cross Medicare Advantage (PPO)SM and Blue Cross Medicare Advantage (HMO)SM claims. These validation edits are being implemented to align with the Centers for Medicare & Medicaid Services (CMS) encounter data submission requirements. Providers should confirm that the NDCs submitted on any claims are appropriate for services rendered and active for the date(s) of service billed.

The table below specifies which NDC-related elements must be entered if NDCs are included on electronic professional and institutional claims for Medicare Advantage members. Claims submitted containing NDCs may be rejected if any of these data elements are missing or incorrect. Rejected claims must be resubmitted with the correct data. If you use a billing service or clearinghouse, please share this information with your vendor. 

Elements Required when NDC is Present on Electronic Claims Professional Electronic Claim (837P) Loops and Segments Institutional Electronic Claim (837I) Loops and Segments
Current Procedural Terminology (CPT®) or Healthcare Common Procedure Coding System (HCPCS) Code Loop 2400, SV101-1 = HC
Loop 2400, SV101-2 = [CPT/HCPCS code]
Loop 2400, SV202-1 = HC
Loop 2400, SV202-2 = [CPT/HCPCS code]
If the CPT/HCPCS code in SV101-2 (professional claim)/SV202-2 (institutional claim) is an unlisted procedure code or Not Otherwise Classified (NOC) code, a description is required Loop 2400, SV101-7
Loop 2400, SV202-7
Line Item Charge Amount Loop 2400, SV102 Loop 2400, SV203
Unit of Measurement Code Loop 2400, SV103 = UN Loop 2400, SV204 = UN
Service Unit Count Loop 2400, SV104 Loop 2400, SV205
NDC Qualifier Loop 2410, LIN02 = N4 Loop 2410, LIN02 = N4
NDC (11-character alpha-numeric value containing no spaces, hyphens or special characters) Loop 2410, LIN03 = NDC Number Loop 2410, LIN03 = NDC Number
Quantity/Dosage* (Number of NDC units) Loop 2410, CTP04 Loop 2410, CTP04
Unit of Measure (UOM = UN, ML, GR or F2) Loop 2410, CTP05-1 Loop 2410, CTP05-1
Prescription Number (when applicable) Loop 2410, REF01 = XZ
REF02 = [prescription number]
Loop 2410, REF01 = XZ
REF02 = [prescription number]

If NDCs are submitted on paper professional (CMS-1500) and institutional (UB-04) claims for Medicare Advantage members, the following NDC-related elements must be included: 

Professional Paper Claim (CMS-1500) Fields and NDC-related Information Institutional (UB-04) Form Locator Numbers and NDC-related Information
  • 24A (shaded area) – NDC Qualifier, NDC 11-digit number, Unit of Measure Qualifier and Unit Quantity
  • 24D – CPT/HCPCS code
  • 24G – HCPCS unit
  • 42 – Revenue code 
  • 43 – Revenue Code Description, NDC Qualifier, NDC 11-digit number, Unit of Measure Qualifier and Unit Quantity
  • 44 – HCPCS code
  • 45 – Service/Assessment Date
  • 46 – Service Units

*For assistance with calculating the number of NDC units, independently contracted BCBSIL providers may access the NDC Units Calculator Tool at no cost through our secure site – look for the National Drug Codes (NDCs): Billing Resources link on our Provider website Home page at The NDC Units Calculator Tool is also available via the Availity™ Web Portal.

For additional claim-related information, refer to the appropriate Provider Manual in the Standards and Requirements section on our website at As always, your assigned BCBSIL Provider Network Consultant is available to provide assistance to you and your staff.