Which code set is used to report drugs, biologicals, and chemotherapy drugs in the outpatient setting?

The correct choice for reporting drugs, biologicals, and chemotherapy drugs in the outpatient setting is HCPCS Level II. This coding system was specifically designed to include a diverse range of healthcare services, including supplies and products not classified in other coding systems. HCPCS Level II codes are particularly important for reporting non-physician services, including those provided by outpatient facilities and are essential for the billing and reimbursement processes related to medications and therapies.

ICD-10 codes are primarily used for diagnostic purposes and capturing a patient's medical condition rather than for reporting services or items provided, which makes them unsuitable for this scenario. CPT Codes are mainly used for reporting medical procedures and services performed by healthcare providers, while DRG Codes are used in the inpatient hospital setting for classifying hospital cases for payment purposes, thus also not applicable to outpatient drug reporting. Each of these coding systems serves specific functions within the healthcare system, which is why HCPCS Level II stands out as the appropriate choice for the outpatient reporting of drugs and related therapies.