Directed Pharmacy Dispensing Payment Opportunity

The Minnesota Department of Human Services (DHS) Medical Assistance Directed Pharmacy Dispensing Payment Program is a supplemental initiative designed to help independent pharmacies bridge the gap between true dispensing costs and managed care reimbursement rates. It provides an additional $4.50 dispensing payment per eligible prescription for Medical Assistance (Medicaid) managed care claims.

To qualify for the program, pharmacies must meet the following criteria:

• Must not be owned or affiliated with a Pharmacy Benefit Manager and one of the following:
• Must operate 13 or fewer retail locations OR must serve rural or medically underserved areas as designated by the Health Resources and Services Administration (HRSA), or be otherwise qualified as an independent local lifeline pharmacy

Operation and Enrollment

• Payment: The $4.50 supplemental payment is applied on top of current MCO (Managed Care Organization) contracted reimbursement rate for eligible claim
• Enrollment: Pharmacies must attest to the DHS that they meet the program’s qualifiers to receive supplemental funds
• Once approved, claims are processed alongside typical Medicaid claim submissions

Eligible pharmacies must complete the Directed Pharmacy Dispensing Payment Assurance Statement (DHS-8750) (PDF) and fax to 651-431-7462 by July 24, 2026, per Minnesota Statutes, 256B.69, subdivision 6i. MCOs will begin making payments to pharmacies as early as August 2026. 

Deadline: July 24

Read more at the DHS website (scroll to May 18 News and Updates)