JW Modifier: Drug Amount Discarded/Not Administered to any Patient

by Experian Health 1 min read August 9, 2016

Effective January 1, 2017, when processing claims for Part B drugs and biologicals, except those provided under Competitive Acquisition Program (CAP), the use of the JW modifier to identify unused drugs or biologicals that are appropriately discarded is required. 

The current policy allows contractors the discretion to determine whether to require the JW modifier for any claims with discarded drugs or biologicals, and the specific details regarding how the discarded drug or biological information should be documented.

In order to more effectively identify and monitor billing and payment for discarded drugs and biologicals, CMS is revising this policy to require the uniform use of the JW modifier for all claims with discarded Part B drugs and biologicals.

Also, effective January 1, 2017, providers are required to document the discarded drug or biological in the patient’s medical record.

CMS encourages physicians, hospitals and other providers and suppliers to care for and administer drugs and biologicals to patients in such a way that they can use drugs or biologicals most efficiently, in a clinically appropriate manner.

Read the entire MedLearn Matter Article 9963 here: https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNMattersArticles/Downloads/MM9603.pdf

Related Posts

State of Claims 2026: Why denials remain an uphill climb

Experian Health's State of Claims 2026 survey finds that the denial rate has barely moved: 40% of providers report 10% or more claims denied.

November 6, 2026 by Experian Health
Claims management 101: A comprehensive guide to streamlining healthcare billing

This guide explains how automation and better data can streamline healthcare claims management and improve reimbursement outcomes.

October 30, 2026 by Experian Health
Healthcare claim denial statistics: State of Claims Report 2026

Get the latest health insurance claim denial statistics and learn how automated solutions can help with better claims management.

October 28, 2026 by Experian Health

Subscribe to our blog

Enter your name and email for the latest updates.

Click here to view Experian’s U.S. Consumer Data Privacy Notice.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Subscribe to the Experian Health blog

Get the latest industry news and updates!
Subscribe