Texas Medicaid requires modifier U8 when an FQHC bills a contraceptive device purchased through 340B
The July 2026 Texas Medicaid Provider Procedures Manual says an FQHC seeking reimbursement for an IUD or implantable contraceptive capsule must submit the family-planning service and device codes on the same claim. The device may be reimbursed in addition to the FQHC encounter payment and is not subject to FQHC limitations; providers must use modifier U8 when the device was purchased through the 340B Drug Pricing Program, while modifier FP is reserved for the annual family-planning examination.
This statewide billing instruction does not prove any particular health center's 340B participation, acquisition price, savings, or treatment of other drugs.
Primary source
Texas Medicaid & Healthcare Partnership (TMHP)Source packet
This story's primary source + 4 related tracked stories with theirs — one print-ready digest for your team or board packet.
Free — subscribes you to the weekly Intel Brief. Individual sources are always clickable above, no email needed.
This story will move — get the follow-up
The weekly FQHC Intel Brief traces every claim to a primary source, like the one above. Free.
You are signing up for the newsletter you choose, a short welcome sequence, occasional product updates, and one-click unsubscribe. We do not sell your email. Privacy Policy · Do Not Sell/Share
FQHC Talent. (2026, June 30). Texas Medicaid requires modifier U8 when an FQHC bills a contraceptive device purchased through 340B. Primary source: Texas Medicaid & Healthcare Partnership (TMHP). Retrieved July 21, 2026, from https://www.fqhctalent.com/intel/tx-medicaid-340b-u8-fqhc-billing-baseline-july-2026
More in Risk & Compliance
Jul 10
Eli Lilly's 340B Termination Turns Into Litigation and Congressional Pushback — Tampa General Sues in Federal Court, 72 House Members Demand HHS Act
Jul 9
OIG declines to sanction an FQHC's produce-box and voucher program — a favorable outcome, but one that legally protects only the health center that asked
Jul 8
$3.3M California Billing-Fraud Settlement Turns on Rendering-Provider NPIs and Uncredentialed NPs/PAs — an Adjacent-Sector Warning FQHCs Should Read Closely
Jul 5
Section 1557 Language Access Annual Notice Year 1 Anniversary — July 5, 2026 Compliance Window