Q-code

Mitch, you asked and tried to answer the main questions I have at the end of your prepared comments, but it's still kind of bizarre to me that the reimbursement issues are just surfacing now, especially one month after a positive NCD and the Q-code took effect.

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And this is going to take time for them to get comfortable with the cost density of PROVENGE and getting comfortable with the new NCD and having issued - submitted a few Q-code patients where they get rapid reimbursement, we think those are going to resolve over a period of time.

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Therefore, we believe that the issuance of the NCD and the Q-code will eventually resolve most of these concerns.

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So, that's just a unique paradigm that we need to deal with, and we believe that the combination of the NCD as physicians get educated on it, as well as the more rapid reimbursement timeline with the Q-code, once that starts to become a routine part of the practice, they will get much more comfortable with the cost density issues.

unknown title 2011

And there is really three lives on stool on reimbursement that I talked about right there is rapid payment with the Q-code, there is NCD that's more consistent with our FDA label and then there is a patient assistance program that I talked to make sure that patients can get out regardless of their financial needs.

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In other words if you have a line of credit with your bank to buy a certain amount of drug and you have an accounts liability for PROVENGE to get a certain amount per month that limits your ability to buy other drugs, if you're getting paid very rapidly, and as we expect with the Q-code that that's going to occur, that becomes less of an issue.

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The Q-code is a product specific code that enables electronic submission of claims, which in turn can expedite payment, thereby facilitating the reimbursement process further.

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Despite the much favorable reimbursement environment for Provenge following the final Centers for Medicare and Medicaid Services (CMS) decision and implementation of the Q-code (discussed below), management believes most physicians are still unaware of these developments.

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Provenge also has the Q-code, effective from July 1.

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The reimbursement landscape for PROVENGE has recently become much more favorable with the issuance of a broad NCD and Q-code.

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