National Drug Code

What Does National Drug Code Mean?

The National Drug Code (NDC) is a code created and regularly updated by the U.S. Food and Drug Administration. This 10-digit number is used to identify both prescription and non-prescription drugs. In the context of insurance, many insurance companies only cover certain drugs listed under the National Drug Code.

Insuranceopedia Explains National Drug Code

Prescription drugs can be very expensive, so whether they are covered by insurance is crucial for policyholders. If a particular drug is not covered and a patient needs it, they may have to pay a significant amount out of pocket to obtain it. Often, insurance companies will only cover prescription drugs listed under a National Drug Code (NDC), excluding non-prescription drugs.

The National Drug Code is similar to a barcode in that each unique NDC represents a different product. The numbers include codes for the manufacturer or distributor (known as the labeler), as well as specific product and package details. The FDA assigns the labeler code, while the other numbers are assigned by the labeler.