Many providers refuse to reimburse or allow on-line billing of prescribed compounded medications stating that all medications must have an NDC number.
NDC numbers are identifier numbers for manufactured drug products.
NDC numbers do not apply to compounded medications-medications prescribed by a physician that are specially altered to meet a unique patient need. Since NDC numbers are often required for on-line billing, many pharmacists are asked to provide the NDC number of the most expensive product in the compounded medication. However, this would be considered a fraudulent activity since the compounded medication is not the same product as the component manufactured product. The result is a compounded medication misbranded with an incorrect NDC number. It is also important to note that an NDC number does not indicate FDA approval.