MedicaidAdministrativeMedium impact
BT202113: Compounds submitted with unidentifiable ingredients to be rejected; what pharmacies need to do
Indiana Medicaid (IHCP)·IN·Provider Bulletin
Effective date
Apr 1, 2021
We identified it
Jun 19, 2026
Summary
Effective April 1, 2021, Indiana Medicaid will reject compound medication claims containing unidentifiable ingredients with reject code 771. Pharmacies must use recognizable NDCs for all ingredients except water and flavoring agents, which should be excluded from claim submissions but documented on compound worksheets.
Action Required
By April 1, 2021: Billing team must notify pharmacy partners that Indiana Medicaid compound claims with unidentifiable NDCs will be rejected with code 771. Pharmacies must resubmit using only recognizable NDCs, exclude water and flavoring from claims (but document on worksheets), and cannot override with submission clarification code 08 for unidentifiable ingredients.