Effective Date of Rule: Thirty-one days after filing.

     Purpose: The rule improves provider community understanding about outpatient drug coverage and limitations to the expansion of the smoking cessation benefit, and clarifies "over-the-counter" (OTC) coverage due to the questions that the department receives from pharmacy providers.

     Citation of Existing Rules Affected by this Order: Amending WAC 388-530-1000, 388-530-1050, 388-530-2000, 388-530-2100, 388-530-3000, 388-530-3200, 388-530-4100, and 388-530-4150.

     Statutory Authority for Adoption: RCW 74.04.050, 74.08.090.

     Other Authority: RCW 74.09.700, chapter 245, Laws of 2008 (SB 6421).

      Adopted under notice filed as WSR 08-15-007 on July 3, 2008.

     Changes Other than Editing from Proposed to Adopted Version: Note: Text to clarify rules for the OTC coverage was inadvertently omitted under WSR 08-15-007. The department will make those rule amendments under a separate rule proposal.

     Amended Section

     WAC 388-530-1000(3) Coverage determinations are decided by the department:

     (a) According to federal guidelines;

     (b) In consultation with the drug use review (DUR board); or

     (c) As recommended by the department's medical consultants and the department's pharmacists. Coverage determinations for the department are made by the department's pharmacists or medical consultants in accordance with applicable federal law. The department's determination may include consultation with the drug use review (DUR) board.

     Amended Section

     WAC 388-530-2000 (1)(c)(iii) Fluoride ((varnish for children under the early and periodic screening, diagnosis, and treatment (EPSDT) program)) prescribed for clients under the age of twenty-one.

     Amended Section

     WAC 388-530-2000(2) Coverage determinations for the department are decided by:

     (a) The department in consultation with federal guidelines; or

     (b) The drug use review (DUR) board; and

     (c) The department's medical consultants and the department's pharmacist(s).

     (3) The department does not...

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 2, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 6, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 8, Repealed 0.

     Date Adopted: October 14, 2008.

Stephanie E. Schiller

Rules Coordinator

     (2) The department reimburses for outpatient drugs, vitamins, minerals, devices, and pharmaceutical supplies that are:

     (a) Covered. Refer to WAC 388-530-2000 for covered drugs, vitamins, minerals, devices, and drug-related supplies and to WAC 388-530-2100 for noncovered drugs and drug-related supplies;

     (b) Prescribed by a provider with ((prescribing)) prescriptive authority (see exceptions for family planning and emergency contraception for ((woman [women])) women eighteen years of age and older in WAC 388-530-2000 (1)(b), and over-the-counter (OTC) drugs to promote smoking cessation in WAC 388-530-2000 (1)(a)(v);

     (c) Within the scope of an eligible client's medical assistance program;

     (d) Medically necessary as defined in WAC 388-500-0005 and determined according to the process found in WAC 388-501-0165; and

     (e) Authorized, as required within this chapter;

     (f) Billed according to WAC 388-502-0150 and 388-502-0160; and

     (g) Billed according to the requirements of this chapter.

     (3) Coverage determinations for the department are made by the department's pharmacists or medical consultants in accordance with applicable federal law. The department's determination may include consultation with the drug use review (DUR) board.

     (4) The department may not ((pay)) reimburse for prescriptions written by healthcare practitioners whose application for a core provider agreement (CPA) has been denied, or whose CPA has been terminated.

     (((4))) (5) The department may not ((pay)) reimburse for prescriptions written by non-CPA healthcare practitioners who do not have a current core provider agreement with the department when the department determines there is a potential danger to the client's health and/or safety.

[Statutory Authority: RCW 74.04.050, 74.08.090, 74.09.530, and 74.09.700. 07-20-049, § 388-530-1000, filed 9/26/07, effective 11/1/07; 06-24-036, § 388-530-1000, filed 11/30/06, effective 1/1/07. Statutory Authority: RCW 74.09.080, 74.04.050 and 42 C.F.R. Subpart K, subsection 162.1102. 02-17-023, § 388-530-1000, filed 8/9/02, effective 9/9/02. Statutory Authority: RCW 74.08.090, 74.04.050. 01-01-028, § 388-530-1000, filed 12/7/00, effective 1/7/01. Statutory Authority: RCW 74.08.090. 96-21-031, § 388-530-1000, filed 10/9/96, effective 11/9/96.]

     "Active ingredient" - The chemical component of a drug responsible for a drug's prescribed/intended therapeutic effect. The department limits coverage of active ingredients to those with an eleven-digit national drug code (NDC) and those specifically authorized by the department.

     "Actual acquisition cost (AAC)" - The net cost a provider paid for a drug, device, or drug-related supply marketed in the package size purchased. The ((ACC)) AAC includes discounts, rebates, charge backs and other adjustments to the price of the drug, device or drug-related supply, but excludes dispensing fees.

     "Administer" - Includes the direct application of a prescription drug or device by injection, insertion, inhalation, ingestion, or any other means, to the body of a patient by a practitioner, or at the direction of the practitioner.

     "Appointing authority" - For the evidence-based prescription drug program of the participating agencies in the state-operated health care programs, the following persons acting jointly: The administrator of the health care authority (HCA), the secretary of the department of social and health services (DSHS), and the director of the department of labor and industries (L&I).

     "Automated authorization" - Adjudication of claims using submitted NCPDP data elements or claims history to verify that the department's authorization requirements have been satisfied without the need for the department to request additional clinical information.

     "Automated maximum allowable cost (AMAC)" - The rate established by the department for a multiple-source drug that is not on the maximum allowable cost (MAC) list and that is designated by two or more products at least one of which must be under a federal drug rebate contract.

     "Average manufacturer price (AMP)" - The average price paid to a manufacturer by wholesalers for drugs distributed to retail pharmacies.

     "Average sales price (ASP)" - The weighted average of all nonfederal sales to wholesalers net of charge backs, discounts, rebates, and other benefits tied to the purchase of the drug product, whether it is paid to the wholesaler or the retailer.

     "Average wholesale price (AWP)" - The average price of a drug product that is calculated from wholesale list prices nationwide at a point in time and reported to the department by the department's drug file contractor.

     "Combination drug" - A commercially available drug including two or more active ingredients.

     "Compendia of drug information" includes the following:

     (1) The American Hospital Formulary Service Drug Information;

     (2) The United States Pharmacopeia Drug Information; and

     (3) DRUGDEX Information System.

     "Compounding" - The act of combining two or more active ingredients or adjusting therapeutic strengths in the preparation of a prescription.

     "Deliver or delivery" - The transfer of a drug or device from one person to another.

     "Dispense as written (DAW)" - An instruction to the pharmacist forbidding substitution of a generic drug or a therapeutically equivalent product for the specific drug product prescribed.

     "Dispensing fee" - The fee the department sets to pay pharmacy providers for dispensing department-covered prescriptions. The fee is the department's maximum reimbursement for expenses involved in the practice of pharmacy and is in addition to the department's reimbursement for the costs of covered ingredients.

     "Drug evaluation matrix" - The criteria-based scoring sheet used to objectively and consistently evaluate the food and drug administration (FDA) approved drugs to determine drug coverage status.

     "Drug file" - A list of drug products, pricing and other information provided to the department and maintained by a drug file contractor.

     "Drug file contractor" - An entity which has been contracted to provide regularly updated information on drugs, devices, and drug-related supplies at specified intervals, for the purpose of pharmaceutical claim adjudication. Information is provided specific to individual national drug codes, including product pricing.

     "Drug rebates" - Reimbursements provided by pharmaceutical manufacturers to state Medicaid programs under the terms of the manufacturers' agreements with the Department of Health and Human Services (DHHS).

     "Drug-related supplies" - Nondrug items necessary for the administration, delivery, or monitoring of a drug or drug regimen.

     "Drug use review (DUR)" - A review of covered outpatient drug use that assures prescriptions are appropriate, medically necessary, and not likely to result in adverse medical outcomes.

     "Effectiveness" - The extent to which a given intervention is likely to produce beneficial results for which it is intended in ordinary circumstances.

     "Efficacy" - The extent to which a given intervention is likely to produce beneficial effects in the context of the research study.

     "Emergency kit" - A set of limited pharmaceuticals furnished to a nursing facility by the pharmacy that provides prescription dispensing services to that facility. Each kit is specifically set up to meet the emergency needs of each nursing facility's client population and is for use during those hours when pharmacy services are unavailable.

     "Endorsing practitioner" - A practitioner who has reviewed the Washington preferred drug list (PDL) and has enrolled with the health care authority (HCA), agreeing to allow therapeutic interchange (substitution) of a preferred drug for any nonpreferred drug in a given therapeutic class on the Washington PDL.

     "Estimated acquisition cost (EAC)" - The department's estimate of the price providers generally and currently pay for a drug marketed or sold by a particular manufacturer or labeler.

     "Evidence-based" and "evidenced-based medicine (EBM)" - The application of a set of principles and a method for the review of well-designed studies and objective clinical data to determine the level of evidence that proves to the greatest extent possible, that a healthcare service is safe, effective and beneficial when making population-based coverage policies or individual medical necessity decisions.

     "Evidence-based practice center" - A research organization that has been designated by the Agency for Healthcare Research and Quality (AHRQ) of the U.S. government to conduct systematic reviews of all the evidence to produce evidence tables and technology assessments to guide health care decisions.

     "Federal upper limit (FUL)" - The maximum allowable reimbursement set by the Centers for Medicare and Medicaid Services (CMS) for a multiple-source drug.

     "Four brand name prescriptions per calendar month limit" - The maximum number of paid prescription claims for brand name drugs that the department allows for each client in a calendar month without a complete review of the client's drug profile.

     "Generic drug" - A nonproprietary drug that is required to meet the same bioequivalency tests as the original brand name drug.

     "Inactive ingredient" - A drug component that remains chemically unchanged during compounding but serves as the:

     (1) Necessary vehicle for the delivery of the therapeutic effect; or

     (2) Agent for the intended method or rate of absorption for the drug's active therapeutic agent.

     "Ingredient cost" - The portion of a prescription's cost attributable to the covered drug ingredients or chemical components.

     "Innovator multiple source drug" - As set forth in Section 1927 (k)(7)(A)(ii) of the Social Security Act, includes all covered outpatient drugs approved under a new drug application (NDA), product license approval (PLA), establishment license approval (ELA), or antibiotic drug approval (ADA). A covered outpatient drug marketed by a cross-licensed producer or distributor under the approved new drug application will be included as an innovator multiple source drug when the drug product meets this definition.

     "Less than effective drug" or "DESI" - A drug for which:

     (1) Effective approval of the drug application has been withdrawn by the Food and Drug Administration (FDA) for safety or efficacy reasons as a result of the drug efficacy study implementation (DESI) review; or

     (2) The secretary of the Department of Health and Human Services (DHHS) has issued a notice of an opportunity for a hearing under section 505(e) of the federal Food, Drug, and Cosmetic Act on a proposed order of the secretary to withdraw approval of an application for such drug under such section because the secretary has determined the drug is less than effective for some or all conditions of use prescribed, recommended, or suggested in its labeling.

     "Long-term therapy" - A drug regimen a client receives or will receive continuously through and beyond ninety days.

     "Maximum allowable cost (MAC)" - The maximum amount that the department reimburses for a drug, device, or drug-related supply.

     "Medically accepted indication" - Any use for a covered outpatient drug:

     (1) Which is approved under the federal Food, Drug, and Cosmetic Act; or

     (2) The use of which is supported by one or more citations included or approved for inclusion in any of the compendia of drug information, as defined in this chapter.

     "Modified unit dose delivery system" (also known as blister packs or "bingo/punch cards") - A method in which each patient's medication is delivered to a nursing facility:

     (1) In individually sealed, single dose packages or "blisters"; and

     (2) In quantities for one month's supply, unless the prescriber specifies a shorter period of therapy.

     "Multiple-source drug" - A drug marketed or sold by:

     (1) Two or more manufacturers or labelers; or

     (2) The same manufacturer or labeler:

     (a) Under two or more different proprietary names; or

     (b) Under a proprietary name and a generic name.

     "National drug code (NDC)" - The eleven-digit number the FDA and manufacturer or labeler assigns to a pharmaceutical product and attaches to the product container at the time of packaging. The NDC is composed of digits in 5-4-2 groupings. The first five digits comprise the labeler code assigned to the manufacturer by the Food and Drug Administration (FDA). The second grouping of four digits is assigned by the manufacturer to describe the ingredients, dose form, and strength. The last grouping of two digits describes the package size.

     "Noncontract drugs" - Are drugs manufactured or distributed by manufacturers/labelers who have not signed a drug rebate agreement with the federal Department of Health and Human Services.

     "Nonpreferred drug" - A drug that has not been selected as a preferred drug within the therapeutic class(es) of drugs on the preferred drug list.

     "Obsolete NDC" - A national drug code replaced or discontinued by the manufacturer or labeler.

     "Over-the-counter (OTC) drugs" - Drugs that do not require a prescription before they can be sold or dispensed.

     "Peer reviewed medical literature" - A research study, report, or findings regarding the specific use of a drug that has been submitted to one or more professional journals, reviewed by experts with appropriate credentials, and subsequently published by a reputable professional journal. A clinical drug study used as the basis for the publication must be a double blind, randomized, placebo or active control study.

     "Pharmacist" - A person licensed in the practice of pharmacy by the state in which the prescription is filled.

     "Pharmacy" - Every location licensed by the state board of pharmacy in the state where the practice of pharmacy is conducted.

     "Pharmacy and therapeutic (P&T) committee" - The independent Washington state committee created by RCW 41.05.021 (1)(a)(iii) and 70.14.050. At the election of the department, the committee may serve as the drug use review board provided for in WAC 388-530-4000.

     "Point-of-sale (POS)" - A pharmacy claims processing system capable of receiving and adjudicating claims on-line.

     "Practice of pharmacy" - The practice of and responsibility for:

     (1) Accurately interpreting prescription orders;

     (2) Compounding drugs;

     (3) Dispensing, labeling, administering, and distributing of drugs and devices;

     (4) Providing drug information to the client that includes, but is not limited to, the advising of therapeutic values, hazards, and the uses of drugs and devices;

     (5) Monitoring of drug therapy and use;

     (6) Proper and safe storage of drugs and devices;

     (7) Documenting and maintaining records;

     (8) Initiating or modifying drug therapy in accordance with written guidelines or protocols previously established and approved for a pharmacist's practice by a practitioner authorized to prescribe drugs; and

     (9) Participating in drug use reviews and drug product selection.

     "Practitioner" - An individual who has met the professional and legal requirements necessary to provide a health care service, such as a physician, nurse, dentist, physical therapist, pharmacist or other person authorized by state law as a practitioner.

     "Preferred drug" - Drug(s) of choice within a selected therapeutic class that are selected based on clinical evidence of safety, efficacy, and effectiveness.

     "Preferred drug list (PDL)" - The department's list of drugs of choice within selected therapeutic drug classes.

     "Prescriber" - A physician, osteopathic physician/surgeon, dentist, nurse, physician assistant, optometrist, pharmacist, or other person authorized by law or rule to prescribe drugs. See WAC 246-863-100 for pharmacists' prescriptive authority.

     "Prescription" - An order for drugs or devices issued by a practitioner authorized by state law or rule to prescribe drugs or devices, in the course of the practitioner's professional practice, for a legitimate medical purpose.

     "Prescription drugs" - Drugs required by any applicable federal or state law or regulation to be dispensed by prescription only or that are restricted to use by practitioners only.

     "Prospective drug use review (Pro-DUR)" - A process in which a request for a drug product for a particular client is screened, before the product is dispensed, for potential drug therapy problems.

     "Reconstitution" - The process of returning a single active ingredient, previously altered for preservation and storage, to its approximate original state. Reconstitution is not compounding.

     "Retrospective drug use review (Retro-DUR)" - The process in which drug utilization is reviewed on an ongoing periodic basis to identify patterns of fraud, abuse, gross overuse, or inappropriate or not medically necessary care.

     "Risk/benefit ratio" - The result of assessing the side effects of a drug or drug regimen compared to the positive therapeutic outcome of therapy.

     "Single source drug" - A drug produced or distributed under an original new drug application approved by the Food and Drug Administration (FDA).

     "Substitute" - To replace a prescribed drug, with the prescriber's authorization, with:

     (1) An equivalent generic drug product of the identical base or salt as the specific drug product prescribed; or

     (2) A therapeutically equivalent drug other than the identical base or salt.

     "Systematic review" - A specific and reproducible method to identify, select, and appraise all the studies that meet minimum quality standards and are relevant to a particular question. The results of the studies are then analyzed and summarized into evidence tables to be used to guide evidence-based decisions.

     "Terminated NDC" - (([a])) An eleven-digit national drug code (NDC) that is discontinued by the manufacturer for any reason. The NDC may be terminated immediately due to health or safety issues or it may be phased out based on the product's shelf life.

     "Therapeutic alternative" - A drug product that contains a different chemical structure than the drug prescribed, but is in the same pharmacologic or therapeutic class and can be expected to have a similar therapeutic effect and adverse reaction profile when administered to patients in a therapeutically equivalent dosage.

     "Therapeutic class" - A group of drugs used for the treatment, remediation, or cure of a specific disorder or disease.

     "Therapeutic interchange" - To dispense a therapeutic alternative to the prescribed drug when an endorsing practitioner who has indicated that substitution is permitted, prescribes the drug. See therapeutic interchange program (TIP).

     "Therapeutic interchange program (TIP)" - The process developed by participating state agencies under RCW 69.41.190 and 70.14.050, to allow prescribers to endorse a Washington preferred drug list, and in most cases, requires pharmacists to automatically substitute a preferred, equivalent drug from the list.

     "Therapeutically equivalent" - Drug products that contain different chemical structures but have the same efficacy and safety when administered to an individual, as determined by:

     (1) Information from the Food and Drug Administration (FDA);

     (2) Published and peer-reviewed scientific data;

     (3) Randomized controlled clinical trials; or

     (4) Other scientific evidence.

     "Tiered dispensing fee system" - A system of paying pharmacies different dispensing fee rates, based on the individual pharmacy's total annual prescription volume and/or the drug delivery system used.

     "True unit dose delivery" - A method in which each patient's medication is delivered to the nursing facility in quantities sufficient only for the day's required dosage.

     "Unit dose drug delivery" - True unit dose or modified unit dose delivery systems.

     "Usual and customary charge" - The fee that the provider typically charges the general public for the product or service.

     "Washington preferred drug list (Washington PDL)" - The list of drugs selected by the appointing authority to be used by applicable state agencies as the basis for purchase of drugs in state-operated health care programs.

     "Wholesale acquisition cost" - The price paid by a wholesaler for drugs purchased from a manufacturer.

[Statutory Authority: RCW 74.04.050, 74.08.090, 74.09.530, and 74.09.700. 07-20-049, § 388-530-1050, filed 9/26/07, effective 11/1/07. Statutory Authority: RCW 74.08.090, 70.14.050, 69.41.150, 69.41.190, chapter 41.05 RCW. 05-02-044, § 388-530-1050, filed 12/30/04, effective 1/30/05. Statutory Authority: RCW 74.09.080, 74.04.050 and 42 C.F.R. Subpart K, subsection 162.1102. 02-17-023, § 388-530-1050, filed 8/9/02, effective 9/9/02. Statutory Authority: RCW 74.08.090, 74.04.050. 01-24-066, § 388-530-1050, filed 11/30/01, effective ˝/02; 01-01-028, § 388-530-1050, filed 12/7/00, effective 1/7/01. Statutory Authority: RCW 74.08.090. 96-21-031, § 388-530-1050, filed 10/9/96, effective 11/9/96.]

     (1) The department's pharmacists and medical consultants:

     (a) Have determined that authorization for the drug, device, or drug-related supply is required, as described in WAC 388-530-3100; or

     (b) Have not yet reviewed the manufacturer's dossier of drug information submitted in the Academy of Managed Care Pharmacy (AMCP) format.

     (2) The drug, device, or drug-related supply is in the therapeutic drug class on the Washington preferred drug list and the product is one of the following:

     (a) Nonpreferred as described in WAC 388-530-4100; and

     (i) The prescriber is a nonendorsing practitioner; or

     (ii) The drug is designated as exempt from the therapeutic interchange program per WAC 388-530-4100(6) or 388-530-4150 (2)(c);

     (b) Preferred for a special population or specific indication and has been prescribed by a nonendorsing practitioner under conditions for which the drug, device, or drug-related supply is not preferred; or

     (c) Determined to require authorization for safety.

     (3) For the purpose of promoting safety, efficacy, and effectiveness of drug therapy, the department identifies clients or groups of clients who would benefit from further clinical review.

     (4) The department designates the prescriber(s) as requiring authorization because the prescriber(s) is under department review or is sanctioned for substandard quality of care.

     (5) Utilization data indicate there are health and safety concerns or the potential for misuse and abuse. Examples of utilization concerns include:

     (a) Multiple prescriptions filled of the same drug in the same calendar month;

     (b) Prescriptions filled earlier than necessary for optimal therapeutic response;

     (c) Therapeutic duplication;

     (d) Therapeutic contraindication;

     (e) Excessive dosing, excessive duration of therapy, or subtherapeutic dosing as determined by FDA labeling or the compendia of drug information; and

     (f) ((Number of brand prescriptions filled per calendar month; and

     (g))) Number of prescriptions filled per month in total or by therapeutic drug class.

     (6) The pharmacy requests reimbursement in excess of the maximum allowable cost and the drug has been prescribed with instructions to dispense as written.

[Statutory Authority: RCW 74.04.050, 74.08.090, 74.09.530, and 74.09.700. 07-20-049, § 388-530-3000, filed 9/26/07, effective 11/1/07.]

     (a) Use of expedited authorization codes as published in the department's prescription drug program billing instructions and numbered memoranda;

     (b) Use of specified values in national council of prescription drug programs (NCPDP) claim fields;

     (c) Use of diagnosis codes; and

     (d) Evidence of previous therapy within the department's claim history.

     (2) When the automated requirements in subsection (1) of this section do not apply or cannot be satisfied, the pharmacy provider must request authorization from the department before dispensing. The pharmacy provider must:

     (a) Ensure the request states the medical diagnosis and includes medical justification for the drug, device, drug-related supply, or circumstance as listed in WAC 388-530-3000(4); and

     (b) Keep documentation on file of the prescriber's medical justification that is communicated to the pharmacy by the prescriber at the time the prescription is filled. The records must be retained for the period specified in WAC 388-502-0020 (1)(c).

     (3) When the department receives the request for authorization:

     (a) The department acknowledges receipt:

     (i) Within twenty-four hours if the request is received during normal state business hours; or

     (ii) Within twenty-four hours of opening for business on the next business day if received outside of normal state business hours.

     (b) The department reviews all evidence submitted and takes one of the following actions within fifteen business days:

     (i) Approves the request;

     (ii) Denies the request if the requested service is not medically necessary; or

     (iii) Requests the prescriber submit additional justifying information.

     (A) The prescriber must submit the additional information within ten days of the department's request.

     (B) The department approves or denies the request within five business days of the receipt of the additional information.

     (C) If the prescriber fails to provide the additional information within ten days, the department will deny the requested service. The department sends a copy of the request to the client at the time of denial.

     (4) The department's authorization may be based on, but not limited to:

     (a) Requirements under this chapter and WAC 388-501-0165;

     (b) Client safety;

     (c) Appropriateness of drug therapy;

     (d) Quantity and duration of therapy;

     (e) Client age, gender, pregnancy status, or other demographics; and

     (f) The least costly therapeutically equivalent alternative ((between two or more products of equal effectiveness)).

     (5) The department evaluates request for authorization of covered drugs, devices, and drug-related supplies that exceed limitations in this chapter on a case-by-case basis in conjunction with subsection (4) of this section and WAC 388-501-0169.

     (6) If a provider needs authorization to dispense a covered drug outside of normal state business hours, the provider may dispense the drug without authorization only in an emergency. The department must receive justification from the provider within seventy-two hours of the fill date, excluding weekends and Washington state holidays, to be paid for the emergency fill.

     (7) The department may remove authorization requirements under WAC 388-530-3000 for, but not limited to, the following:

     (a) Prescriptions written by specific practitioners based on consistent high quality of care; or

     (b) Prescriptions filled at specific pharmacies and billed to the department at the pharmacies' lower acquisition cost.

     (8) Authorization requirements in WAC 388-530-3000 are not a denial of service.

     (9) Rejection of a claim due to the authorization requirements listed in WAC 388-530-3000 is not a denial of service.

     (10) When a claim requires authorization, the pharmacy provider must request authorization from the department. If the pharmacist fails to request authorization as required, the department does not consider this a denial of service.

     (11) Denials that result as part of the authorization process will be issued by the department in writing.

     (12) The department's authorization:

     (a) Is a decision of medical appropriateness; and

     (b) Does not guarantee payment.

[Statutory Authority: RCW 74.04.050, 74.08.090, 74.09.530, and 74.09.700. 07-20-049, § 388-530-3200, filed 9/26/07, effective 11/1/07.]

     (1) Washington state contracts with evidence-based practice center(s) for systematic reviews of drug(s).

     (2) The pharmacy and therapeutics (P&T) committee reviews and evaluates the safety, efficacy, and outcomes of prescribed drugs, using evidence-based information provided by the evidence-based practice center(s).

     (3) The P&T committee makes recommendations to state agencies as to which drug(s) to include on the Washington PDL, under chapter 182-50 WAC.

     (4) The appointing authority makes the final selection of drugs included on the Washington PDL.

     (5) Drugs in a drug class on the Washington PDL, that have been studied by the evidence-based practice center(s) and reviewed by the P&T committee, and which have not been selected as preferred are considered nonpreferred drugs and are subject to the therapeutic interchange program (TIP) and dispense as Written (DAW) rules under WAC 388-530-4150.

     (6) Drugs in a drug class on the Washington PDL that have not been studied by the evidence-based practice center(s) and have not been reviewed by the P&T committee will be treated as nonpreferred drugs not subject to the dispense as written (DAW) or the therapeutic interchange program (TIP).

     (7) A nonpreferred drug, which the department determines as covered, is considered for authorization after the client has:

     (a) Tried and failed or is intolerant to at least one preferred drug; and

     (b) Met department established criteria for the nonpreferred drug.

     (8) Drugs in a drug class on the Washington PDL may be designated as preferred drugs for special populations or specific indications.

     (9) Drugs in a drug class on the Washington PDL may require authorization for safety.

     (10) Combination drugs ((are not on the Washington PDL and are considered for authorization according to WAC 388-530-3100)) that have been studied by the evidence-based practice center and have reviewed by the P&T committee may be included in the Washington PDL.

[Statutory Authority: RCW 74.04.050, 74.08.090, 74.09.530, and 74.09.700. 07-20-049, § 388-530-4100, filed 9/26/07, effective 11/1/07.]

     (1) The therapeutic interchange program (TIP) applies only to drugs:

     (a) Within therapeutic classes on the Washington PDL;

     (b) Studied by the evidence-based practice center(s);

     (c) Reviewed by the P&T committee; and

     (d) Prescribed by an endorsing practitioner.

     (2) TIP does not apply:

     (a) ((To drugs that require authorization;

     (b) To drugs with specific limitations;

     (c))) When the pharmacy and therapeutics (P&T) committee determines that TIP does not apply to the therapeutic class on the PDL; or

     (((d))) (b) To a drug prescribed by a nonendorsing practitioner.

     (3) A practitioner who wishes to become an endorsing practitioner must specifically enroll with the health care authority (HCA) as an endorsing practitioner, under the provisions of chapter 182-50 WAC.

     (4) When an endorsing practitioner writes a prescription for a client for a nonpreferred drug, or for a preferred drug for a special population or indication other than the client's population or indication, and indicates that substitution is permitted, the pharmacist must:

     (a) Dispense a preferred drug in that therapeutic class in place of the nonpreferred drug; and

     (b) Notify the endorsing practitioner of the specific drug and dose dispensed.

     (5) When an endorsing practitioner determines that a nonpreferred drug is medically necessary, all of the following apply:

     (a) The practitioner must indicate that the prescription is to be dispensed as written (DAW);

     (b) The pharmacist dispenses the nonpreferred drug as prescribed; and

     (c) The department does not require prior authorization to dispense the nonpreferred drug in place of a preferred drug except when the drug requires authorization for safety.

     (6) In the event the following therapeutic drug classes are on the Washington PDL, pharmacists will not substitute a preferred drug for a nonpreferred drug in these therapeutic drug classes when the endorsing practitioner prescribes a refill (including the renewal of a previous prescription or adjustments in dosage, and samples):

     (a) Antipsychotic;

     (b) Antidepressant;

     (c) Chemotherapy;

     (d) Antiretroviral;

     (e) Immunosuppressive; or

     (f) Immunomodulator/antiviral treatment for hepatitis C for which an established, fixed duration of therapy is prescribed for at least twenty-four weeks but no more than forty-eight weeks.

[Statutory Authority: RCW 74.04.050, 74.08.090, 74.09.530, and 74.09.700. 07-20-049, § 388-530-4150, filed 9/26/07, effective 11/1/07.]

     (a) Outpatient drugs, including over-the-counter drugs, as defined in WAC 388-530-1050, subject to the limitations and requirements in this chapter, when:

     (i) The drug is approved by the Food and Drug Administration (FDA);

     (ii) The drug is for a medically accepted indication as defined in WAC 388-530-1050;

     (iii) The drug is not excluded from coverage under WAC 388-530-2100; ((and))

     (iv) The manufacturer has a signed drug rebate agreement with the federal Department of Health and Human Services (DHHS). Exceptions to the drug rebate requirement are described in WAC 388-530-7500 which describes the drug rebate program; and

     (v) Prescribed by a provider with prescriptive authority (see exceptions for family planning and emergency contraception for women eighteen years of age and older in WAC 388-530-2000 (1)(b), and over-the-counter (OTC) drugs to promote smoking cessation in WAC 388-530-2000 (1)(g).

     (b) Family planning drugs, devices, and drug-related supplies per chapter 388-532 WAC and as follows:

     (i) Over-the-counter (OTC) family planning drugs, devices, and drug-related supplies without a prescription when the department determines it necessary for client access and safety.

     (ii) Family planning drugs that do not meet the federal drug rebate requirement in WAC 388-530-7500 on a case-by-case basis; and

     (iii) Contraceptive patches, contraceptive rings, and oral contraceptives, only when dispensed in at least a three-month supply, unless otherwise directed by the prescriber. There is no required minimum for how many cycles of emergency contraception may be dispensed.

     (c) Prescription vitamins and mineral products, only as follows:

     (i) When prescribed for clinically documented deficiencies;

     (ii) Prenatal vitamins, when prescribed and dispensed to pregnant women; or

     (iii) Fluoride ((varnish for children under the early and periodic screening, diagnosis, and treatment (EPSDT) program)) prescribed for clients under the age of twenty-one.

     (d) Drug-related devices and drug-related supplies as an outpatient pharmacy benefit when:

     (i) Prescribed by a provider with prescribing authority;

     (ii) Essential for the administration of a covered drug;

     (iii) Not excluded from coverage under WAC 388-530-2100; and

     (iv) Determined by the department, that a product covered under chapter 388-543 WAC Durable medical equipment and supplies should be available at retail pharmacies.

     (e) Preservatives, flavoring and/or coloring agents, only when used as a suspending agent in a compound.

     (f) Over-the-counter (OTC) drugs, without a prescription, to promote smoking cessation only for clients who are eighteen years of age or older and participating in a department-approved smoking cessation program. Limitation extensions as described in WAC 388-501-0169 are prohibited for the age and counseling requirements in this section.

     (g) Prescription drugs to promote smoking cessation only for clients who are eighteen years of age or older and participating in a department-approved smoking cessation program. Limitation extensions as described in WAC 388-501-0169 are prohibited for the age and counseling requirements in this section.

     (2) ((Coverage determinations for the department are decided by:

     (a) The department in consultation with federal guidelines; or

     (b) The drug use review (DUR) board; and

     (c) The department's medical consultants and the department's pharmacist(s).

     (3))) The department does not reimburse for any drug, device, or drug-related supply not meeting the coverage requirements under this section.

[Statutory Authority: RCW 74.04.050, 74.08.090, 74.09.530, and 74.09.700. 07-20-049, § 388-530-2000, filed 9/26/07, effective 11/1/07.]

     (a) A drug that is:

     (i) Not approved by the Food and Drug Administration (FDA); or

     (ii) Prescribed for a nonmedically accepted indication, including diagnosis, dose, or dosage schedule that is not evidenced-based.

     (b) A drug prescribed:

     (i) For weight loss or gain;

     (ii) For infertility, frigidity, impotency;

     (iii) For sexual or erectile dysfunction; or

     (iv) For cosmetic purposes or hair growth((; or

     (v) To promote tobacco cessation, except as described in WAC 388-533-0400(20) tobacco cessation for pregnant women)).

     (c) Drugs used to treat sexual or erectile dysfunction, in accordance with section 1927 (d)(2)(K) of the Social Security Act, unless such drugs are used to treat a condition other than sexual or erectile dysfunction, and these uses have been approved by the Food and Drug Administration.

     (d) Drugs listed in the federal register as "less-than-effective" ("DESI" drugs) or which are identical, similar, or related to such drugs.

     (e) Outpatient drugs for which the manufacturer requires as a condition of sale that associated tests or monitoring services be purchased exclusively from the manufacturer or manufacturer's designee.

     (f) A product:

     (i) With an obsolete national drug code (NDC) for more than two years;

     (ii) With a terminated NDC;

     (iii) Whose shelf life has expired; or

     (iv) Which does not have an eleven-digit NDC.

     (g) Any drug regularly supplied by other public agencies as an integral part of program activity (e.g., immunization vaccines for children).

     (h) Free pharmaceutical samples.

     (i) Over-the-counter or prescription drugs to promote smoking cessation unless the client is eighteen years old or older and participating in a department-approved cessation program.

     (2) A client can request an exception to rule (ETR) as described in WAC 388-501-0160.

[Statutory Authority: RCW 74.04.050, 74.08.090, 74.09.530, and 74.09.700. 07-20-049, § 388-530-2100, filed 9/26/07, effective 11/1/07.]

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