Texas Medicaid requires FQHCs to use modifier U8 for 340B contraceptive devices
Issue
The July 2026 Texas Medicaid Provider Procedures Manual says FQHCs must put the family-planning service and the IUD or implant device codes on the same claim. Use modifier U8 when the device was bought through 340B, and modifier FP only for the yearly family-planning exam.
The manual allows payment for the device in addition to the encounter payment.
Sources for this story
Texas Medicaid & Healthcare Partnership (TMHP)Part of
- 340B drug pricing
State Medicaid 340B billing rules and carve-outs
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FQHC Talent. (2026, June 30). Texas Medicaid requires FQHCs to use modifier U8 for 340B contraceptive devices. Source: Texas Medicaid & Healthcare Partnership (TMHP). Retrieved November 11, 2026, from https://www.fqhctalent.com/intel/tx-medicaid-340b-u8-fqhc-billing-baseline-july-2026