Texas Medicaid and CHIP Vendor Drug Program

The Vendor Drug Program (VDP) provides statewide access to covered outpatient drugs for individuals enrolled in Medicaid, CHIP, the CSHCN Services program, the HTW program, and KHC program. The cost for drug prescriptions in the Texas Medicaid program is shared by the federal government and the state. In order for Texas to receive federal funds assistance for prescription claims, any drugs prescribed must be produced by a drug manufacturer that participates in the Centers for Medicare & Medicaid Services (CMS) drug rebate program. In return for having their drugs covered by state Medicaid programs, the manufacturer agrees to pay rebates according to their state and federal contracts. VDP oversees the collection of these rebates from drug manufacturers.

Visit the VDP website for more information. You can also search the formulary and view the Preferred Drug List.