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Terms and Definition
Terms and Definitions
| Term | Definition |
|---|---|
| Medicare Modernization Act (MMA) | The enactment of prescription drug coverage provided for individuals covered under Medicare |
| Medigap plan | Supplemental insurance provided through private insurance companies to help cover costs not reimbursed by the Medicare plan, such as coinsurance, copays, and deductibles |
| National Drug Code (NDC) | 10-digit number given to all drugs for identification purposes; in which placeholder zeros are inserted in the proper order in the code for the purpose of standardizing data transmissions |
| National Provider Identifier (NPI) | Number assigned to any health care provider that is used for the purpose of standardizing health data transmissions |
| Open formulary | Formulary list that is essentially unrestricted in the types of drug choices offered or that can be prescribed and reimbursed under the health provider plan or pharmacy benefit plan |