Congress established the Texas Medical Assistance Program, or Medicaid, under Title XIX of the Social Security Act of 1965 to pay medical bills for low-income persons who had no other way to pay for care.  The program began Sept. 1, 1967, under the provisions of Title XIX (Medicaid) of the 1965 Amendments to the Social Security Act and SB 2, The Medical Assistance Act of 1967. The Texas Medicaid drug benefit has been an optional service available to all people enrolled in Texas Medicaid since Sept. 1, 1971.

Date Event

Sept. 1, 1971

Vendor Drug Program begins

July 1, 1993

Creation of in-house electronic claims management system to allow for online, real-time claim processing

Sept. 1, 1999

Outpatient drugs provided through the CSHCN and KHC Programs are paid through VDP

March 1, 2002

Outpatient drugs provided through the CHIP program are paid through VDP

Feb. 23, 2004

Preferred drug list

Aug. 16, 2004

Clinical and therapeutic prior authorizations

Jan. 1, 2006

Medicare Part D benefit

Jan. 20, 2009

Real-time coordination of benefits

March 1, 2012

Most Medicaid managed care and all CHIP eligible clients receive prescription benefits through managed care organizations

Oct. 1, 2017

HHSC moved oversight of the clinician-administered drug (CAD) benefit to VDP.