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December 2016 Texas Medicaid Provider Procedures Manual

Appendix B: Vendor Drug Program : B.1 Vendor Drug Program

The Texas Medicaid Vendor Drug Program (VDP) makes payment for prescriptions of covered outpatient drugs to those pharmacy providers contracted with the VDP. In-state pharmacies licensed as Class A or C by the Texas State Board of Pharmacy are eligible for enrollment in the VDP. Out-of-state pharmacies and pharmacies holding any other class of pharmacy license are considered for inclusion in the program on a case-by-case basis, relative to the benefits made available to a client eligible for Texas Medicaid. Contracts are not granted to applicants unless additional benefits to the recipient are established.
VDP provides statewide access to prescription drugs as prescribed by treating physician or other health-care provider for clients eligible for:
VDP manages drug formulary for Children’s Health Insurance Program (CHIP).
VDP remains responsible as claims processor for Medicaid fee-for-service (FFS) clients and management of Medicaid drug formulary and preferred drug list.
Refer to:
The Medicaid Managed Care Handbook (Vol. 2, Provider Handbooks) for additional information about managed care prescription drug and pharmacy benefits.

Texas Medicaid & Healthcare Partnership
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