Class Code: 4611

Per NCCI's Scopes Code Description:

Code 4611 is applied to insureds engaged in the compounding or blending of drugs, medicines or pharmaceutical preparations. The Code 4611 risk does not manufacture any of the ingredients that comprise the foregoing but receives the ingredients from others along with other miscellaneous ingredients such as sugars, starches, oils, extracts, flavorings and colorings.

Refer to Code 4825 for risks that engage in the compounding and blending activities described above and, additionally, manufacture ingredients.

Code 4611 operations may involve simple hand or machine mixing or blending where no chemical reaction processes are involved. Solutions may be prepared by blending to formula in the presence or absence of heat to produce medicines or pharmaceutical preparations. Some ingredients may be mixed with binders and pressed into pill or tablet form. Some pills may be coated and dried and some ingredients may be worked into a paste or formed into cakes. The operations are usually automated, and some manufacturing stages may require rigidly controlled temperature and humidity conditions.

The manufacture and packaging and labeling of patent drugs, medicines, ointments, powders, cough preparations, tooth preparations, shaving creams, tonics, shampoos, perfumes, colognes and cosmetics are examples of the compounded products that are assigned to Code 4611, provided that the insured does not manufacture incidental ingredients for these products. As evidenced by this classification’s footnote, metal container manufacturing is separately classified.

Refer to Code 8045—Store—Drug—Retail for prescription drug service involving compounding, mixing, or blending of such drugs by pharmacies for prescriptions that are being filled for individual patients.

Refer to Code 8047—Store—Drug—Wholesale for risks that are principally engaged in the wholesale distribution of drugs, medicines and pharmaceutical ingredients used for the compounding and preparation of prescriptions as well as insureds engaged solely in the packaging or repackaging of drugs, medicines or pharmaceutical preparations compounded or manufactured by others. Such contract operations include packaging of all types except packaging in aerosol containers. Refer to Code 2111 for aerosol packaging operations.

Home infusion pharmacies manufacture infusion/intravenous pharmacy solutions. These solutions, along with related equipment, are delivered to patients’ locations. These risks may also employ nurses who educate the patient on proper use of the product. This process may take place in a hospital (with a patient that is about to get discharged) or at the patient’s home. The home visit may include changing medical dressings, administering infusion pharmacy solution, cleaning the treatment area, and additional patient education. The preparation of the infusion products is assigned to the appropriate pharmaceutical preparation code (e.g., Code 4611 or Code 4825). The visiting nurses are assigned to Code 8835.

Sale of bulk drugs to health care facilities (e.g., nursing homes, hospitals, etc.) for use by these facilities to compound prescriptions for their patients is classified to Code 8047. An example is the sale of bulk drugs to a hospital pharmacy for use by that pharmacy in compounding or filling prescriptions for the hospital’s patients.

Refer to Code 4693—Pharmaceutical Goods Mfg. NOC for risks that manufacture goods such as adhesive bandages and pharmaceutical appliances.

State Addendum
Massachusetts Code 4611 also is applied to insureds engaged solely in the packaging or repackaging of drugs, medicines or pharmaceutical preparations compounded or manufactured by others. Such contract operations include packaging of all types except in aerosol containers. Refer to Code 2111 for aerosol packaging operations. Refer to Code 8017—Store—Retail NOC for prescription drug service involving compounding, mixing or blending of such drugs (Code 8045 is N/A MA). Refer to Code 8018—Store—Wholesale NOC for risks that are principally engaged in the wholesale distribution of drugs, medicines and pharmaceutical ingredients used for compounding and preparation of prescriptions (Code 8047 is N/A MA). Sale of bulk drugs to health care facilities (e.g., nursing homes, hospitals, etc.) for use by these facilities to compound prescriptions for their patients is classified to Code 8018.

Rate per $100. of Renumeration: $ 0.94

Construction Exemption Required: No