TX HHS Form 1337. CHIP Drug Rebate Agreement

The Texas Health and Human Services (HHS) Commission issues the CHIP Drug Rebate Agreement to establish rebates for prescription outpatient drugs utilized by Children's Health Insurance Program (CHIP) recipients. This agreement aims to provide a framework for manufacturers/labelers to submit rebate claims for covered outpatient drugs, ensuring that CHIP beneficiaries receive affordable access to essential medications.

The purpose of this agreement is to facilitate the reimbursement process for outpatient prescription drugs used by CHIP clients. The Texas HHS Commission operates the CHIP program in accordance with Chapter 62 of the Texas Health and Safety Code and as authorized under Title XXI of the federal Social Security Act. By signing this agreement, manufacturers/labelers commit to providing rebates for covered outpatient drugs, promoting cost-effective healthcare services for CHIP recipients.

This agreement outlines the terms and conditions governing rebate submissions, including definitions for key terms such as Average Manufacturer Price (AMP), Basic Rebate, Best Price, and Consumer Price Index-Urban Factor (CPI-U Factor). The agreement also specifies the scope of covered outpatient drugs, including innovator multiple-source drugs, and the process for submitting rebate claims. By understanding the purpose, audience, and usage of this form, manufacturers/labelers can effectively navigate the reimbursement process and support the health needs of CHIP beneficiaries.