Diaper Billing Guide

Effective August 7, 2024, TennCare and CoverKids will begin reimbursing pharmacy providers for diapers and training pants through the Optum Rx Pharmacy Point of Sale System.

Effective February 15, 2025, new MAC rates for Covered UPCs effective.

Effective February 28, 2025, TennCare will allow pharmacies to submit a “Generic Diaper UPC” to dispense diapers that are not on the Covered UPC List.

The list of covered UPCs and other resources.

  • Diapers and/or training pants will be covered for children under 2 years old.
  • Diapers and training pants will have a $0 copay to the member. Diapers will not count against monthly Rx limits.
  • Up to 100 diapers/training pants will be covered every 30 days with a max of 200 diapers every 60 days.
    • Days’ supply should be calculated by dividing the number of diapers in the package by 3.3333.
    • Example: A box of 96 diapers would be a 29-day supply. Two boxes of 96 diapers (192 diapers total) should be processed for a 58-day supply.
  • Diapers will be submitted by UPC, as they do not have an assigned NDC number.
    • Barcode UPC numbers are converted to 11 digits when loaded into Medi-Span.
    • To convert from a 12-digit UPC to an 11-digit UPC, remove both the leading digit and the check digit at the end, leaving a 10-digit code. A zero is added into the 6th position to create the 11-digit code.
    • Generic Diaper UPCs will need to be added to the pharmacy’s system for processing. They will not sync from Medi-Span.
  • Pharmacy must submit a full package quantity for reimbursement. See Covered UPC List for covered product package sizes. Pharmacies should not break packages of diapers unless the product is a case with multiple packages inside, and they are labeled for individual sale by the manufacturer.
    • For Generic Diaper UPCs, pharmacies should process claims for the quantity of the full package (or multiples of the full package) of the product being dispensed. Please note, claims will not reject when submitted if the package quantity and submitted quantity do not match.
  • Claims may be submitted for multiples of the same UPC up to the maximum of 200 diapers per claim.
  • Only one product UPC will be covered per claim submission. Another size, style, or brand of diapers may be used for the next available fill.
  • Sales tax will be paid to the pharmacy on claims for diapers or training pants. Pharmacy must submit sales tax on the claim. Pharmacies should work with their software vendor to learn how to submit sales tax on prescription claims.
    • Sales tax rate will be based on the pharmacy’s local sales tax rate.
  • An administration fee will be paid to pharmacies that submit claims for covered and generic UPCs within the specified product limits. An administration fee will show in the Incentive field.
    • The administration fee paid is $0.03 per diaper (max $6 for 200 diapers).
      • Example: A claim for 5 packages of 24 count diapers (120 diapers total) would have an admin fee paid of $3.60.
      • The admin fee is pro-rated based on quantity of diapers submitted.
  • Pharmacies may submit claims for products on the Covered UPC list, or they may submit a Generic Diaper UPC to dispense a non-covered UPC. The pharmacy should submit the claim for the UPC that corresponds to the size of the diapers being submitted from the list below:
Diaper Size UPC UPC Description

Preemie

99999-0000-10

Generic Diaper Size Preemie

Newborn

99999-0000-00

Generic Diaper Size Newborn

Size 1

99999-0000-01

Generic Diaper Size 1

Size 2

99999-0000-02

Generic Diaper Size 2

Size 3

99999-0000-03

Generic Diaper Size 3

Size 4

99999-0000-04

Generic Diaper Size 4

Size 5

99999-0000-05

Generic Diaper Size 5

Size 6

99999-0000-06

Generic Diaper Size 6

Size 7

99999-0000-07

Generic Diaper Size 7

  • At this time, only Covered UPCs of training pants may be dispensed under the benefit.
  • A per-diaper, size and brand-specific MAC will be paid for dispensing covered diaper UPCs. A per-diaper, size specific MAC rate is also paid for Generic Diaper UPCs submitted for reimbursement.
  • For information on MAC rate inquiries, please refer to the FAQs.
  • The following MAC rates are effective February 15, 2025, for Covered UPCs and February 28, 2025, for Generic UPCs.
Diaper Size Huggies Pampers Cuties Generic UPC

Preemie-Newborn

$0.31

$0.31

$0.30

$0.21

Size 1-4

$0.32

$0.32

$0.30

$0.21

Size 5

$0.33

$0.39

$0.33

$0.25

Size 6-7

$0.46

$0.56

$0.46

$0.30

Size 2T-3T Training Pants

n/a

$0.32

n/a

n/a

Size 3T-4T Training Pants

n/a

$0.39

n/a

n/a

Size 4T-5T Training Pants

n/a

$0.56

n/a

n/a

Size 5T-6T Training Pants

n/a

$0.56

n/a

n/a

  • The MACs above apply only to Covered UPCs within the stated brands. Non-covered UPCs may be submitted using the Generic Diaper UPC of the size diaper being dispensed.
  • The MAC rates for Generic UPCs were calculated based on the following brands:
    • Parent’s Choice (Walmart)
    • Kirkland Signature (Costo)
    • Little Journey (Aldi)
    • Comforts (Kroger)
    • Member’s Mark (Sam’s Club)

An administration fee will be provided instead of the pharmacy’s set Professional Dispensing Fee (PDF). MAC rate paid and reimbursement will be calculated per diaper: Total paid to pharmacy= (MAC rate + sales tax calculated on MAC rate + admin fee ($0.03/diaper)) x quantity dispensed

When submitting a claim for covered diapers/training pants, submission should include the NCPDP fields as depicted below and follow recommended guidance.

NCPDP Field Name NCPDP Field Number Value

Prescriber

411-DB

Pharmacy, pharmacist, or prescriber’s NPI

Prescription Origin Code

419-DJ

5 (Pharmacy)

Days’ Supply

405-D5

Quantity of diapers divided by 3.33

Submission Clarification Code (SCC)

420-DK

42 (The prescriber ID submitted has been validated, is

active) (Needed only if NPI in prescriber field belongs to

pharmacy or pharmacist.)

Number of Refills Authorized

415-DF

0-99 (Pharmacy may choose how many refills to add to

pharmacy generated order.)

For pharmacies in Tennessee, the following sales tax fields shall be submitted, also. Out of state pharmacies should follow their state laws.

NCPDP Field Name NCPDP Field Number Value

Percentage Sales Tax Amount Submitted

482-GE

N/A

Percentage Sales Tax Rate Submitted

483-HE

10 (or local tax rate)

Percentage Sales Tax Basis Submitted

484-JE

N/A

For newborns that do not yet have their own TennCare or CoverKids Optum Rx ID number, please utilize the following for claim submission:

NCPDP Field Name NCPDP Field Number Value

First Name

312-CC

Mother or father’s first name followed by the word “baby.”

Ex: JANEBABY

Last Name

313-CD

Mother or father’s last name.

Cardholder ID

302-C2

Mother or father’s OptumRx ID number or SSN

Date of Birth

304-C4

Mother or father’s DOB

Patient Relationship Code

306-C6

03

Prior Authorization Type Code

461-EU

8

Prior Authorization Number Submitted

462-EV

55555555555 (Eleven fives)

The override can be used twice. For additional uses of the newborn override, please contact Optum Rx Customer Service.

  • For instances where a set of multiples (e.g. twins, triplets) need diapers and do not have their own Optum Rx ID yet, please contact Optum Rx Customer Service for assistance with overrides.
    • For example, for Baby A—pharmacy uses PA Type Code = 8 and PA number = 55555555555, and for Baby B (and beyond), pharmacy calls Optum Rx Customer Service for additional override.
    • If the member(s) need diapers again before receiving their Optum Rx ID number, follow the procedure above a second time. Each member is entitled to receive the full quantity of diapers allowed by the program.

For members with other coverage as primary, the pharmacy should submit to the primary plan. If the primary plan rejects, then submit the claim to TennCare or CoverKids as secondary. Claims submitted without required COB fields will reject with NCPDP Code 13 or other specific reject codes.

NCPDP Field Name NCPDP Field Number Value

Other Coverage Code

308-C8

3-Other Coverage Exists, Claim Not Covered

Other Payer Date

443-E8

N/A

Other Payer ID

340-7C

N/A

Other Payer ID Qualifier

339-6C

N/A

Other Payer Reject Code

472-6E

60, 61, 63, 65, 66, 67, 68, 69, 70, 3Y

BIN: 001553

PCNs: TNM (TennCare) and CKDS (CoverKids)

Group: N/A

Optum Rx Customer Service: 866-434-5520

Optum Rx Provider Liaison Pharmacists: TNRxEducation@optum.com