COLORADO SUMMARY OF EXISTING LAW

The Physician-Administered Drugs (PAD) Billing Manual for Colorado Medicaid states that processes known as “white-bagging” and “brown-bagging” where PADs are billed to the pharmacy benefit are not allowed by the Department. Colardo defines “white-bagging” as the distribution of patient-specific drug from a pharmacy to a medical provider’s office, clinic or hospital for administration. Likewise, it defines “brown-bagging” as when a pharmacy dispenses a medication directly to the member, who then transports the drug to the provider’s office, clinic or hospital for administration.

Links to Proposed Laws:
Physician-Administered Drugs (PAD) Billing Manual

PRACTICAL NOTE FOR EXISTIG LAW:
Does not prohibit insurers from requiring white or brown bagging, but provides a limitation on physicians accepting and billing for white or brown bagged drugs, at least within Colorado’s Medicaid program.