Common use of Compounded Drugs Clause in Contracts

Compounded Drugs. Compounded drugs will be covered only if obtained from Fairview Compounding Pharmacy or other designated compounding pharmacy provided that at least one active ingredient is a prescription drug. Payment for a compounded drug that has a commercially prepared product available that is identical to or similar to the compounded drug will be considered for coverage after documented failure of the commercially prepared product(s), unless a formulary exception is obtained. A commercially prepared product is one that is available at the pharmacy in its final, usable form and does not need to be compounded at the pharmacy. The applicable formulary benefit level will be applied. Compounded drugs containing any product that is excluded by PIC will not be covered, including dosages and route of administration that have not been approved by the FDA.