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Service benchmark · Pharmacy

Pharmacy dispensing fee: Medicaid rates by state

13 states publish a Medicaid rate for pharmacy dispensing fee, compared at the physician psychologist level. The median is —; rates range from $1.80 in Virginia to $26.40 in District of Columbia.

13 statesCompared as publishedSources: official state Medicaid publications

States
13
Median
—
Highest
$26.40District of Columbia
Lowest
$1.80Virginia
Rates on file
87
State ranking

Pharmacy dispensing fee: highest and lowest states

Headline rate per state for the same provider level, as published.

#StateRateUnitPer hourEffective
1District of ColumbiaAny qualified provider (rate does not vary by provider)$26.40——2011-01-01
2TennesseeAny qualified provider (rate does not vary by provider)$15.00prescription—2023-11-01
3OregonAny qualified provider (rate does not vary by provider)$11.93prescription—2024-12-01
7South DakotaAny qualified provider (rate does not vary by provider)$10.55——2021-07-01
13VirginiaAny qualified provider (rate does not vary by provider)$1.80——2010-04-01
See all 13 states for pharmacy dispensing fee — start free

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About this benchmark

How pharmacy dispensing fee is compared

This is a service-level benchmark rather than a single code: each state's headline rate for pharmacy dispensing fee is chosen to match the same service and the same provider level.

  • Provider level. States are compared at the physician or licensed psychologist (incl. BCBA-D) level. Rates for other levels on file (any qualified provider and independent (non-agency) provider) are kept separate, never mixed into this ranking.
  • Unit. Of the 13 states, 6 publish their headline rate per prescription and 1 per percent, and 6 schedules print no unit at all (a flat amount per service). The ranking uses the rate as published, so read the unit before comparing two states.
  • Variants. 8 of the 13 states publish more than one rate for this service (by modifier, program, setting or provider type); the headline rate is the one that matches the comparison, and the workspace lists every variant.
  • Depth. 87 rates for this service are on file across all states, versions and provider levels; this page shows one headline rate per state.
Context

Why pharmacy dispensing fee rates differ between states

The highest-paying state, District of Columbia, pays $26.40; the lowest, Virginia, pays $1.80, a 14.7x gap. 13 of the 13 states pay above the median of —. Common reasons rates for pharmacy services spread this way:

  • Drugs given in a practice or clinic are commonly priced from a benchmark such as average sales price or wholesale acquisition cost, which moves every quarter.
  • For children, many vaccines are supplied through the federal Vaccines for Children program, so the Medicaid payment can be for administration only.
  • States differ in whether they pay a fixed fee, a percentage of a benchmark or invoice cost.

Billing notes

Drug codes are billed in units of the dose stated in the code, so a larger dose bills more units. Many states require the National Drug Code (NDC) on the claim alongside the billing code.

FAQ

Frequently asked questions

Which state pays the most for pharmacy dispensing fee?

District of Columbia: $26.40.

Which state pays the least for pharmacy dispensing fee?

Virginia: $1.80.

What is the average Medicaid rate for pharmacy dispensing fee?

Across 13 states the median is —, comparing the same provider level in each state. 13 states pay above it.

How are the states compared?

One headline rate per state, matched on the service and the physician or licensed psychologist (incl. BCBA-D) level, as published. Rates for other provider levels and add-ons are not mixed in.

What unit is pharmacy dispensing fee billed in?

Of the 13 states, 6 publish it per prescription and 1 per percent, and 6 schedules print no unit at all (a flat amount per service).

Do managed-care plans pay these rates?

It depends on the state. Each state's managed-care page shows whether plans must pay at least the published rate, follow a state-set rate, or negotiate their own for this service line.