Division of Federal Employees' Compensation (DFEC)

Generic Medications: For services billed on or after July 1, 2016, the Office of Workers' Compensation Programs (OWCP) Division of Federal Employees' Compensation (DFEC) will calculate the maximum allowable fee for generic drugs at 60% of the average wholesale price (AWP) plus a $4.00 dispensing fee.

Compound Medications: For services billed on or after July 1, 2016, the Office of Workers' Compensation Programs (OWCP) Division of Federal Employees' Compensation (DFEC) will calculate the maximum allowable fee at:

  • 50% of AWP of each NDC in the compounded drug, for compounded drugs containing three or fewer ingredients
  • 30% of AWP of each NDC in the compounded drugs, for compounded drugs containing four or more ingredients

Compound Medication Initial Fill Duration:

Effective July 1, 2016, the initial prescriptions for compound medication should be for a period not to exceed 90 days. Initial prescriptions for periods greater than 90-days may be subject to further review for medical necessity.