We bill for wasted drug to BCBS but have never used the JW modifier. We just make sure everything is documented in regard to dosage, amount administered, and amount wasted. We double check the vial size and whether its single use or not, against the billable units.
I briefly checked the BCBS website but couldn't find the policy on drug waste. If this is truly why they are denying the claim than they should be able to direct you to the specific policy online stating they do not cover waste. If they can't show you in black and white I would argue the denial.
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