Pharmacogenomics and Companion Diagnostics - Medicare Advantage Form
Please refer to CMS website for the most current applicable National Coverage Determination (NCD)/
Local Coverage Determination (LCD)/Local Coverage Article (LCA)/CMS Online Manual
System/Transmittals.
Pharmacogenomics and Companion Diagnostics
Page: 2 of 25
Title
ID
Number
Jurisdiction
Medicare
Administrative
Contractors (MACs)
Applicable
States/Territories
Type
NCD
LCD
Next Generation Sequencing
(NGS)
90.2
MolDX: Pharmacogenomics Testing
L38435
LCD Molecular Pathology Procedures L35000
LCD
LCD
LCD LCA
LCD LCA
LCD
LCD
LCD
LCD
LCD
MolDX: Pharmacogenomics Testing
L38435
MolDX: Pharmacogenomics Testing
L38394
MolDX: Pharmacogenomics Testing
Billing and Coding: MolDX:
Germline testing for use of PARP
inhibitors
MolDX: Pharmacogenomics Testing
Billing and Coding: MolDX:
Germline testing for use of PARP
inhibitors
Pharmacogenomics Testing
Biomarkers for Oncology
MolDX: Pharmacogenomics Testing
L38335
A55294
L38335
A55294
L39063
L35396
L38294
Molecular Pathology Procedures
L35000
Pharmacogenomics Testing
L39063
Biomarkers for Oncology
MolDX: Pharmacogenomics Testing
L35396
L38294
J5 - Wisconsin
Physicians Service
Insurance
Corporation
J6 - National
Government
Services, Inc. (Part
A/B MAC)
J8 - Wisconsin
Physicians Service
Insurance
Corporation
J15 - CGS
Administrators, LLC
(Part A/B MAC)
JE - Noridian
Healthcare
Solutions, LLC
JF - Noridian
Healthcare
Solutions, LLC
JH - Novitas
Solutions, Inc. (Part
A/B MAC)
JJ - Palmetto GBA
(Part A/B MAC)
JK - National
Government
Services, Inc. (Part
A/B MAC
JL - Novitas
Solutions, Inc. (Part
A/B MAC)
JM - Palmetto GBA
(Part A/B MAC)
IA, KS, MO, NE
IL, MN, WI
IN, MI
KY, OH
CA, HI, NV, American
Samoa, Guam,
Northern Mariana
Islands
AK, AZ, ID, MT, ND,
OR, SD, UT, WA, WY
AR, CO, NM, OK, TX,
LA, MS
AL, GA, TN
CT, NY, ME, MA, NH,
RI, VT
DE, D.C., MD, NJ, PA
NC, SC, VA, WV
LCD
Pharmacogenomics Testing
L39073
Pharmacogenomics and Companion Diagnostics
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JN - First Coast
Service Options, Inc.
(Part A/B MAC)
FL, PR, U.S. VI
Description
Pharmacogenomics and companion diagnostics tests are laboratory studies that use an individual’s unique
genetic makeup to help determine response to a specific medication. Companion diagnostics differ from
pharmacogenomics testing because they are co-developed with a specific drug to help evaluate response or
nonresponse to the drug. Companion diagnostics are often approved by the US Food & Drug Administration
(FDA) corresponding with a specific pharmacotherapy. Both types of tests are used to guide management
for several cancers such as non-small cell lung cancer (NSCLC), breast and colorectal cancer (CRC).
Techniques can vary from test to test include, but may not be limited to, fluorescence in situ hybridization
(FISH), immunohistochemistry (IHC) and next-generation sequencing (NGS).
Multigene (or expanded) panels analyze a broad set of genes simultaneously (as opposed to single gene
testing that searches for variants in one specific gene). Panels often include medically actionable genes but
may also include those with unclear medical management.
Coverage Determination
Humana follows the CMS requirement that only allows coverage and payment for services that are
reasonable and necessary for the diagnosis or treatment of illness or injury or to improve the functioning of
a malformed body member except as specifically allowed by Medicare.
Genetic tests must demonstrate clinical utility, analytical and clinical validity and fulfill the CMS “reasonable and
necessary” criteria. Analytic validity (test accurately identifies the gene variant), clinical validity (test identifies
or predicts the clinically defined disorder) and clinical utility (test measurably improves clinical outcomes) of
the genetic test is supported by generally accepted standards that are based on credible scientific evidence
published in peer-reviewed medical literature generally recognized by the relevant medical community,
specialty society recommendations, and views of physicians practicing in relevant clinical areas. The test
must be ordered by a physician who is treating the beneficiary and the results will be used in the
management of a beneficiary’s specific medical problem.
For jurisdictions with no Medicare guidance for a particular test, Humana will utilize the MolDX program
and Technical Assessments for molecular assays as the standard to evaluate clinical utility, analytical and
clinical validity in conjunction with adhering to Medicare’s reasonable and necessary requirement.
In interpreting or supplementing the criteria above and in order to determine medical necessity consistently,
Humana may consider the following criteria:
Somatic (Acquired) Cancer
Pharmacogenomics and Companion Diagnostics
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Pharmacogenomics and companion diagnostic testing (including single gene, multi-gene panels, and
combinatorial tests) in somatic (acquired) cancer will be considered medically reasonable and necessary
when all the following requirements are met:
• Testing services are performed in a Clinical Laboratory Improvement Amendments (CLIA)-certified
laboratory, when ordered by a treating physician; AND
• Individual is diagnosed with recurrent, relapsed, refractory, metastatic, or advanced stage III or IV
cancer; AND
• Individual has not been previously tested with the same test using NGS or other methodology for the
same cancer genetic content; AND
• Decided to seek further cancer treatment (eg, therapeutic chemotherapy); AND
• The diagnostic laboratory test using NGS or other methodology (eg, FISH, IHC) must have:
o FDA approval or clearance as a companion in vitro diagnostic; AND
o FDA approved or cleared indication for use in that patient’s cancer; AND
o Results provided to the treating physician for management of the patient using a report template to
specify treatment options
Germline (Inherited) Cancer
Pharmacogenomics and companion diagnostic testing (including single gene, multi-gene panels, and
combinatorial tests) in germline (inherited) cancer (eg, MyChoice CDx [0172U]) when all of the following
criteria are met:
• Testing services are performed in a CLIA certified laboratory, when ordered by a treating physician; AND
• Individual is diagnosed with ovarian (including fallopian tube, primary peritoneal cancer) or breast
cancer; AND
• Clinical indication for germline testing for hereditary breast or ovarian cancer (per National
Comprehensive Cancer Network [NCCN] guidelines); AND
• Risk factor for germline breast or ovarian cancer; AND
• Individual has not been previously tested with the same germline test using NGS or other methodology
for the same germline genetic content
• The diagnostic laboratory test using NGS or other methodology (eg, FISH, IHC) must have all of the
Pharmacogenomics and Companion Diagnostics
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following:
o FDA approval or clearance; AND
o Results provided to the treating physician for management of the individual using a report template
to specify treatment options
The use of the criteria in this Medicare Advantage Medical Coverage Policy provides clinical benefits highly
likely to outweigh any clinical harms. Services that do not meet the criteria above are not medically
necessary and thus do not provide a clinical benefit. Medically unnecessary services carry risks of adverse
outcomes and may interfere with the pursuit of other treatments which have demonstrated efficacy.
Coverage Limitations
US Government Publishing Office. Electronic code of federal regulations: part 411 – 42 CFR § 411.15 -
Particular services excluded from coverage
The following services/items will not be considered medically reasonable and necessary:
• Genetic tests that have not demonstrated clinical utility, analytical and clinical validity via the MolDX
Program
• Repeat genetic testing utilizing the same tissue sample for the same content
A review of the current medical literature shows that the evidence is insufficient to determine that this
service is standard medical treatment for these indications. There remains an absence of randomized
blinded clinical studies examining benefit and long-term clinical outcomes establishing the value of this
service in clinical management for these indications.
Screening services such as presymptomatic genetic tests and services used to detect and undiagnosed
diseased or disease predisposition are not a Medicare benefit and are not covered.
The following test types are examples of testing services that may not be considered a benefit (statutory
excluded) and denied as Medicare Excluded tests123:
• Tests considered screening in the absence of clinical signs and symptoms of disease that are not
specifically identified by the law; OR
• Tests that confirm a diagnosis or known information; OR
• Tests to determine risk for developing a disease or condition; OR
• Tests performed to measure the quality of a process; OR
Pharmacogenomics and Companion Diagnostics Page: 6 of 25 • Tests without diagnosis specific indications; OR • Tests identified as investigational by available literature and/or the literature supplied by the developer and are not a part of a clinical trial