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.
Linked evidence
Texas Medicaid & Healthcare Partnership (TMHP)Source packet
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FQHC Talent. (2026, June 30). Texas Medicaid requires modifier U8 when an FQHC bills a contraceptive device purchased through 340B. Linked evidence: Texas Medicaid & Healthcare Partnership (TMHP). Retrieved September 20, 2026, from https://www.fqhctalent.com/intel/tx-medicaid-340b-u8-fqhc-billing-baseline-july-2026
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