J7999 HCPCS code: Compounded drug, not otherwise classified

J7999 is the HCPCS Level II code for compounded drug, not otherwise classified. In 2024 Medicare paid an average of $101.00 per service for J7999 across 280,971 services. Its Medicare coverage code is D (Special coverage instructions apply): Medicare covers it when its national or local coverage criteria are met. The NCCI unit limit is 6 per day on outpatient hospital claims. Medicare volume fell 25% from 2022 to 2024 (375,534 to 280,971 services). In 2024, about 2,634 clinicians billed Medicare for J7999 for 70,340 beneficiaries; California, Florida, Pennsylvania accounted for 46% of services.

Code details

FieldValue
SectionJ codes — Drugs administered other than oral method
Coverage codeD — Special coverage instructions apply
Pricing indicator51 — Drug or biological (priced per ASP/average sales price rules)
BETOS categoryO1E — Other drugs
Added2016-01-01
Last action effective2016-01-01

Who bills J7999 (2024)

MeasureValue
Clinicians billing (by place of service)2,634
Medicare beneficiaries70,340
States with claims47
Share of services in top 3 states (California, Florida, Pennsylvania)46%

Counts only. Supplier and clinician names, contact lists and state-by-state detail are in Caduvo.

Medicare utilization for J7999, 2022–2024

YearServicesBeneficiariesAvg. allowedAvg. paid
2022375,53489,586$117.01$91.69
2023345,02584,564$116.13$90.71
2024280,97170,340$129.26$101.00

States with the most J7999 services (2024)

StateServicesAvg. paid
California58,768$155.42
Florida37,084$68.97
Pennsylvania33,504$139.33
Arizona23,604$73.14
Texas23,544$77.71

NCCI unit limits (MUE)

Claim typeMax units per dayRationale
outpatient hospital claims6Clinical: Data
practitioner claims2Clinical: Data

Medicare policy articles for this code

Covered diagnoses (2,828 ICD-10-CM codes)

The diagnoses most often listed as covered in the policy articles above:

ICD-10-CMDiagnosisArticles listing it
C91.00Acute lymphoblastic leukemia not having achieved remission2
C91.01Acute lymphoblastic leukemia, in remission2
C91.02Acute lymphoblastic leukemia, in relapse2
E08.311Diabetes mellitus due to underlying condition with unspecified diabetic retinopathy with macular edema2
E08.319Diabetes mellitus due to underlying condition with unspecified diabetic retinopathy without macular edema2
E08.3211Diabetes mellitus due to underlying condition with mild nonproliferative diabetic retinopathy with macular edema, right eye2
E08.3212Diabetes mellitus due to underlying condition with mild nonproliferative diabetic retinopathy with macular edema, left eye2
E08.3213Diabetes mellitus due to underlying condition with mild nonproliferative diabetic retinopathy with macular edema, bilateral2
E08.3291Diabetes mellitus due to underlying condition with mild nonproliferative diabetic retinopathy without macular edema, right eye2
E08.3292Diabetes mellitus due to underlying condition with mild nonproliferative diabetic retinopathy without macular edema, left eye2

Showing 10 of 2,828. The full list, non-covered diagnoses and CSV export are in Caduvo.

What changed for J7999

Frequently asked questions

What is HCPCS code J7999?

J7999 is the HCPCS Level II code for compounded drug, not otherwise classified. Short descriptor: "Compounded drug, noc".

How much does Medicare pay for J7999?

In 2024, the average Medicare payment was $101.00 per service (average allowed $129.26).

Does Medicare cover J7999?

Coverage code D — Special coverage instructions apply. Medicare covers it when its national or local coverage criteria are met.

Which diagnoses support coverage for J7999?

Medicare policy articles that cite J7999 list 2,828 covered ICD-10-CM diagnosis codes across 6 articles. The most cited include C91.00 (Acute lymphoblastic leukemia not having achieved remission), C91.01 (Acute lymphoblastic leukemia, in remission), C91.02 (Acute lymphoblastic leukemia, in relapse). A listed diagnosis is necessary but not sufficient; the policy's other criteria still apply.

How many units of J7999 can be billed per day?

6 on outpatient hospital claims; 2 on practitioner claims (NCCI medically unlikely edits).

Building a device that would bill under a code like this? Caduvo matches a device description to HCPCS/CPT codes, Medicare coverage and payment, and the FDA pathway in one report.

Next steps

Sources: CMS HCPCS Level II release October 2025; CMS DMEPOS fee schedule; CMS NCCI MUE tables; CMS Medicare utilization (physician and DME supplier files); CMS Medicare Coverage Database articles. Fees are Medicare allowables, not commercial rates. Not billing or legal advice.

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