J8540 HCPCS code: Dexamethasone, oral, 0.25 mg

J8540 is the HCPCS Level II code for dexamethasone, oral, 0.25 mg. In 2024 Medicare paid an average of $0.04 per service for J8540 across 3,832 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 216 per day on DME suppliers. Medicare volume fell 87% from 2022 to 2024 (28,628 to 3,832 services). In 2024, 8 suppliers billed Medicare for J8540 (purchases), serving 18 beneficiaries.

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
Added2006-01-01
Last action effective2006-01-01

Who bills J8540 (2024)

MeasureValue
Suppliers billing rentals—
Suppliers billing purchases8
Referring clinicians17
Medicare beneficiaries18
States with claims2
YearSuppliersBeneficiaries
20221151
2023928
2024818

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

Medicare utilization for J8540, 2022–2024

YearServicesBeneficiariesAvg. allowedAvg. paid
202228,62851$0.09$0.07
20236,06428$0.09$0.06
20243,83218$0.05$0.04

States with the most J8540 services (2024)

StateServicesAvg. paid
Pennsylvania2,080$0.04
New York880$0.04

NCCI unit limits (MUE)

Claim typeMax units per dayRationale
DME suppliers216Clinical: Society Comment
outpatient hospital claims80Clinical: Data

Medicare policy articles for this code

Covered diagnoses (1,280 ICD-10-CM codes)

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

ICD-10-CMDiagnosisArticles listing it
C00.0Malignant neoplasm of external upper lip1
C00.1Malignant neoplasm of external lower lip1
C00.3Malignant neoplasm of upper lip, inner aspect1
C00.4Malignant neoplasm of lower lip, inner aspect1
C00.6Malignant neoplasm of commissure of lip, unspecified1
C00.8Malignant neoplasm of overlapping sites of lip1
C01Malignant neoplasm of base of tongue1
C02.0Malignant neoplasm of dorsal surface of tongue1
C02.1Malignant neoplasm of border of tongue1
C02.2Malignant neoplasm of ventral surface of tongue1

Showing 10 of 1,280. The full list, non-covered diagnoses and CSV export are in Caduvo.

What changed for J8540

Frequently asked questions

What is HCPCS code J8540?

J8540 is the HCPCS Level II code for dexamethasone, oral, 0.25 mg. Short descriptor: "Oral dexamethasone".

How much does Medicare pay for J8540?

In 2024, the average Medicare payment was $0.04 per service (average allowed $0.05).

Does Medicare cover J8540?

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

Which diagnoses support coverage for J8540?

Medicare policy articles that cite J8540 list 1,280 covered ICD-10-CM diagnosis codes across 1 article. The most cited include C00.0 (Malignant neoplasm of external upper lip), C00.1 (Malignant neoplasm of external lower lip), C00.3 (Malignant neoplasm of upper lip, inner aspect). A listed diagnosis is necessary but not sufficient; the policy's other criteria still apply.

How many units of J8540 can be billed per day?

216 on DME suppliers; 80 on outpatient hospital claims (NCCI medically unlikely edits).

Related J85 codes

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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