Ingredient cost, Dispensing fee changes coming June 1

May 2, 2016: VDP will change the pharmacy reimbursement methodology for all fee for service (FFS) pharmacy claims effective June 1, 2016.  Ingredient costs will differ by the type of pharmacy and methodology will now utilize the National Average Drug Acquisition Cost (NADAC).  The dispensing fee will now include a variable component.  This change only affects the claims processed by VDP and is not related to and does not impact managed care organization reimbursement rates.  More about the pharmacy reimbursement methodology change.

June 17 Deadline Quickly Approaching for Pharmacy Enrollment

May 2, 2016: To avoid potential disruption in payment, all pharmacies must submit a complete re-enrollment application packet on or before Friday, June 17, 2016, in order to be re-enrolled by September 24, 2016.  HHSC is striving to process all applications expeditiously.  Accordingly, the state urges all pharmacies to submit their application as soon as possible.  More about the pharmacy enrollment process and applications received after June 17.


What We Do

The Medicaid/CHIP Vendor Drug Program:

  • Enrolls pharmacy providers that want to provide Medicaid and CHIP services;
  • Manages the State of Texas Medicaid and CHIP formularies;
  • Processes out-patient pharmacy prescription claims for Medicaid fee-for-service, the Texas Women's Health Program, the DSHS Children with Special Health Care Needs (CSHCN) Services Program, and the DSHS Kidney Health Care (KHC) program.

Continuing Education

Watch these multi-part guides to learn about dispensing Texas Medicaid prescriptions, DME, and pharmacy prior authorization:

training videos for pharmacists

Training videos for pharmacy staff 

Chapters include Obtaining a Prior Authorization, Dispensing a 72-hour emergency supply, Confirming eligibility, and Durable medical equipment.

training videos for physicians

Training videos for physicians

Chapters include Preferred Drug List, E-Prescribing (E-Rx), and 72-hour Emergency Prescription Claims.

News Highlights

2016 Texas Pharmacy Association Conference & Expo

April 28, 2016

Stop and visit with VDP staff at the annual Texas Pharmacy Association Conference and Expo, taking place this July in Austin.  Learn more about the TPA expo.

Electronic Prescribing of Controlled Substance Allowed In Texas

October 26, 2015

Over 85 percent of Texas pharmacies have the capability for Electronic Prescribing of Controlled Substances (EPCS) prescriptions. Unfortunately, less than 3 percent of Texas prescribers are using EPCS. More about HHSC's state-wide EPCS campaign.