Website Maintenance

January 29, 2015

The Vendor Drug Program website ( will undergo server maintenance between 1 and 8 a.m. on Sunday, February 1, 2015, and will be unavailable during that time.

340B Reimbursement Changes Coming in 2015

January 29, 2015

On February 1 VDP will change the fee-for-service (FFS) Medicaid reimbursement methodology for calculating the ingredient cost of pharmacy claims paid to eligible health care organizations participating in the Health Resources and Services Administration (HRSA) 340B Drug Pricing Program. More about the 340B reimbursement changes.

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

Hepatitis C Virus Clinical Edit

January 21, 2015

VDP will implement a restricted Hepatitis C Virus (HCV) clinical edit on Friday, January 23, 2015.  The clinical edit applies to eligible clients in both fee for service and those enrolled in managed care.  More about the Hepatitis C clinical edit.

Texas Dual Eligible Integrated Care Project

November 17, 2014

The Texas Health and Human Services Commission is proposing a new way to serve people who are eligible for both Medicare and Medicaid, known as dual eligibles. The goal of the project is to better coordinate the care those individuals receive.  More about the Texas Dual Eligible Integrated Care Project.