National Drug Code (NDC)

 

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                Medical Coding is converting a diagnosis or symptoms, procedures, and drugs into codes and Medical billing is billing insurance companies and patients for procedures and office visits. Their work is submitted to insurance companies for payment purposes, data collection, research, billing and quality improvement purposes.

National Drug Code (NDC)

                “NDC” stands for National Drug Code. It is a unique, 3-segment numeric identifier assigned to each medication listed under Section 510 of the U.S. Federal Food, Drug and Cosmetic Act. The first segment of the NDC identifies the labeler (i.e., the company that manufactures or distributes the drug).

The first segment, the labeler code, is assigned by the FDA. The NDC code can be found on the outside packaging of the drug. You can search with this number to find the exact drug you have. For example, the same drug may be produced by many different manufacturers or the same drug may have different dosages.

NDC USED FOR:

                  Drug products are identified and reported using a unique, three-segment number, called the National Drug Code (NDC), which is a universal product identifier for human drugs.

         NDC CODE:

   Drugs are identified and reported using a unique, three-segment number called the National Drug Code (NDC) which serves as the FDA's identifier for drugs. FDA publishes the listed NDC numbers in the NDC Directory which is updated daily.

The Drug Listing Act of 1972 requires all registered drug companies to provide the FDA with detailed information about any drug products made for commercial distribution. To keep track, drug products are assigned a unique identifier, called the National Drug Code – or NDC – number.

IMPORTANCES OF NDC:

The NDC is highly important to a hospital billing system, especially sites who participate in 340B. Medicare claims are required to include the exact NDC of drugs administered to patients or CMS will not provide reimbursements to the hospital.

NUMBER INDICATE:

The National Drug Code (NDC) is the number which identifies a drug. The NDC number consists of 11 digits, broken into 3 sections in a 5-4-2 format. The first 5 digits identify the labeler code representing the manufacturer of the drug and are assigned by the Food and Drug Administration (FDA)

FORMAT:

An NDC is a unique 10-digit, 3-segment identifier which is assigned to all drugs in U.S. commercial distribution. An NDC is proposed by companies and assigned by FDA through the drug listing process. Current formats for the NDC sequence are 4-4-2, 5-4-1 and 5-3-2.

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