[Code of Federal Regulations]
[Title 42, Volume 3]
[Revised as of October 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 42CFR423.160]

[Page 374-376]
 
                         TITLE 42--PUBLIC HEALTH
 
                    CHAPTER IV--CENTERS FOR MEDICARE
                          & MEDICAID SERVICES,
                        DEPARTMENT OF HEALTH AND
                             HUMAN SERVICES
 
PART 423_VOLUNTARY MEDICARE PRESCRIPTION DRUG BENEFIT--Table of Contents
 
       Subpart D_Cost Control and Quality Improvement Requirements
 
Sec.  423.160  Standards for electronic prescribing.

    (a) General rules. (1) Part D sponsors must establish and maintain 
an electronic prescription drug program that complies with the 
applicable standards in paragraph (b) of this section when transmitting, 
directly or through an intermediary, prescriptions and prescription-
related information using electronic media for covered Part D drugs for 
Part D eligible individuals.
    (2) Except as provided in paragraph (a)(3) of this section, 
prescribers and dispensers that transmit, directly or through an 
intermediary, prescriptions and prescription-related information using 
electronic media must comply with the applicable standards in paragraph 
(b) of this section when e-prescribing for covered Part D drugs for Part 
D eligible individuals.
    (3) Exemptions. (i) Entities transmitting prescriptions or 
prescription-related information by means of computer-generated 
facsimile are exempt from the requirement to use the NCPDP SCRIPT 
Standard adopted by this section in transmitting such prescriptions or 
prescription-related information.
    (ii) Entities may use either HL7 messages or the NCPDP SCRIPT 
Standard to transmit prescriptions or prescription-related information 
internally when the sender and the recipient are part of the same legal 
entity. If an entity sends prescriptions outside the entity (for 
example, from an HMO to a non-HMO pharmacy), it must use the adopted 
NCPDP SCRIPT Standard or other applicable adopted standards. Any 
pharmacy within an entity must be able to receive electronic 
prescription transmittals for Medicare beneficiaries from outside the 
entity using the adopted NCPDP SCRIPT Standard. This exemption does not 
supersede any HIPAA requirement that may require the use of a HIPAA 
transaction standard within an organization.
    (iii) Entities transmitting prescriptions or prescription-related 
information where the prescriber is required by law to issue a 
prescription for a patient to a non-prescribing provider (such as a 
nursing facility) that in turn forwards the prescription to a dispenser 
are exempt from the requirement to use the NCPDP SCRIPT Standard adopted 
by this section in transmitting such prescriptions or prescription-
related information.
    (4) In accordance with section 1860D-4(e)(5) of the Act, the 
standards under this paragraph (b) of this section supersede any State 
law or regulation that--
    (i) Is contrary to the standards or restricts the ability to carry 
out Part D of Title XVIII of the Act; and
    (ii) Pertains to the electronic transmission of medication history 
and of information on eligibility, benefits,

[[Page 375]]

and prescriptions with respect to covered Part D drugs under Part D of 
Title XVIII of the Act.
    (b) Standards. (1) Prescription. The National Council for 
Prescription Drug Programs SCRIPT Standard, Implementation Guide, 
Version 5, Release 0, May 12, 2004, or Prescriber/Pharmacist Interface 
SCRIPT Standard, Implementation Guide, Version 8, Release 1, October 
2005, to provide for the communication of a prescription or 
prescription-related information between prescribers and dispensers, for 
the following:
    (i) Get message transaction.
    (ii) Status response transaction.
    (iii) Error response transaction.
    (iv) New prescription transaction.
    (v) Prescription change request transaction.
    (vi) Prescription change response transaction.
    (vii) Refill prescription request transaction.
    (viii) Refill prescription response transaction.
    (ix) Verification transaction.
    (x) Password change transaction.
    (xi) Cancel prescription request transaction.
    (xii) Cancel prescription response transaction.
    (2) Eligibility. (i) The Accredited Standards Committee X12N 270/
271-Health Care Eligibility Benefit Inquiry and Response, Version 4010, 
May 2000, Washington Publishing Company, 004010X092 and Addenda to 
Health Care Eligibility Benefit Inquiry and Response, Version 4010, A1, 
October 2002, Washington Publishing Company, 004010X092A1, for 
transmitting eligibility inquiries and responses between prescribers and 
Part D sponsors.
    (ii) The National Council for Prescription Drug Programs 
Telecommunication Standard Specification, Version 5, Release 1 (Version 
5.1), September 1999, and equivalent NCPDP Batch Standard Batch 
Implementation Guide, Version 1, Release 1 (Version 1.1), January 2000 
supporting Telecommunications Standard Implementation Guide, Version 5, 
Release 1 (Version 5.1), September 1999, for the NCPDP Data Record in 
the Detail Data Record, for transmitting eligibility inquiries and 
responses between dispensers and Part D sponsors.
    (c) Incorporation by reference. The Director of the Federal Register 
approves, in accordance with 5 U.S.C. 552(a) and 1 CFR part 51, the 
incorporation by reference of the National Council for Prescription Drug 
Programs SCRIPT Standard, Implementation Guide, Version 5, Release 0, 
May 12, 2004, excluding the Prescription Fill Status Notification 
Transaction (and its three business cases; Prescription Fill Status 
Notification Transaction--Filled, Prescription Fill Status Notification 
Transaction--Not Filled, and Prescription Fill Status Notification 
Transaction--Partial Fill), Prescriber/Pharmacist Interface SCRIPT 
Standard, Implementation Guide, Version 8, Release 1, October 2005, 
excluding the Prescription Fill Status Notification Transaction (and its 
three business cases; Prescription Fill Status Notification 
Transaction--Filled, Prescription Fill Status Notification Transaction--
Not Filled, and Prescription Fill Status Notification Transaction--
Partial Fill); the Accredited Standards Committee X12N 270/271--Health 
Care Eligibility Benefit Inquiry and Response, Version 4010, May 2000, 
004010X092 and Addenda to Health Care Eligibility Benefit Inquiry and 
Response, Version 4010, October 2002, Washington Publishing Company, 
004010X092A1, and the National Council for Prescription Drug Programs 
Telecommunication Standard Specification, Version 5, Release 1 (Version 
5.1), September 1999, and equivalent NCPDP Batch Standard Batch 
Implementation Guide, Version 1, Release 1 (Version 1.1), January 2000 
supporting Telecommunications Standard Implementation Guide, Version 5, 
Release 1 (Version 5.1), September 1999, for the NCPDP Data Record in 
the Detail Data Record. You may inspect copies of these materials at the 
headquarters of the Centers for Medicare & Medicaid Services (CMS), 7500 
Security Boulevard, Baltimore, Maryland 21244, Monday through Friday 
from 8:30 a.m. to 4 p.m. or at the National Archives and Records 
Administration (NARA). For information on the availability of this 
material at CMS, call 410-786-0273. For information on the availability 
of this

[[Page 376]]

material at NARA, call 202-741-6030, or go to http://www.archives.gov/
federal--register/code--of--federal--regulations/ibr--locations.html. 
You may obtain a copy of the National Council for Prescription Drug 
Programs SCRIPT Standard, Version 5, Release 0, May 12, 2004 or the 
Prescriber/Pharmacist Interface SCRIPT Standard, Implementation Guide, 
Version 8, Release 1, October 2005, from the National Council for 
Prescription Drug Programs, Incorporated, 9240 E. Raintree Drive, 
Scottsdale, AZ 85260-7518; Telephone (480) 477-1000; and fax (480) 767-
1042 or http://www.ncpdp.org. You may obtain a copy of the Accredited 
Standards Committee X12N 270/271--Health Care Eligibility Benefit 
Inquiry and Response, Version 4010, May 2000, Washington Publishing 
Company, 004010X092 and Addenda to Health Care Eligibility Benefit 
Inquiry and Response, Version 4010, 004010X092A1, October 2002, from the 
Washington Publishing Company,301 West North Bend Way, Suite 107, P.O. 
Box 15388, North Bend, WA 98045; Telephone (425) 831-4999; and fax (425) 
831-3233 or http://www.wpc-edi.com/. You may obtain a copy of the 
National Council for Prescription Drug Programs Telecommunication 
Standard Guide, Version 5, Release 1 (Version 5.1), September 1999, and 
equivalent NCPDP Batch Standard Batch Implementation Guide, Version 1, 
Release 1 (Version 1.1), January 2000 supporting Telecommunications 
Standard Implementation Guide, Version 5, Release 1 (Version 5.1), 
September 1999, for the NCPDP Data Record in the Detail Data Record, 
from the National Council for Prescription Drug Programs, Incorporated, 
9240 E. Raintree Drive, Scottsdale, AZ 85260-7518; Telephone (480) 477-
1000; and FAX (480) 767-1042 or http://www.ncpdp.org.

Authority: Section 1860D-4(e) of the Social Security Act (42 U.S.C. 
1395w-104(e))

[70 FR 67593, Nov. 7, 2005, as amended at 71 FR 36023, June 23, 2006]