Medicaid VDP Switches to Cost-Avoidance Reimbursement Model

The Medicaid/CHIP Vendor Drug Program processes out-patient pharmacy prescriptions for: Medicaid Fee-For-Service, Children with Special Health Care Needs (CSHCN) Services Program, and the Kidney Health Care (KHC) program.

Effective October 15, 2013, pharmacies enrolled in the Medicaid/CHIP Vendor Drug Program (VDP) will be required to submit claims for clients enrolled in Medicaid fee-for-service, Children with Special Health Care Needs Services Program, and the Kidney Health Care Program using the individual national provider identification number (NPI) of the prescribing provider or the supervising prescriber where applicable. Texas medical license numbers will no longer be accepted.

Effective March 1, 2012, most Medicaid clients and all Children’s Health Insurance Program (CHIP) clients receive their prescription drug benefits through the managed care service delivery model.

Medicaid Formulary Resources