Definitions for "Dispensing Fee"
An amount added to the prescription ingredient cost by a pharmacy to determine a prescription price. The dispensing fee represents the charge for the professional services provided by the pharmacist when dispensing a prescription (including overhead expenses and profit). Most direct pay insured prescription programs use dispensing fees to establish pharmacy payment for prescriptions.
The pharmacist's charge for filling a prescription (also see Professional Fee).
After being authorized by the state legislature, the state's Medicaid agency reimburses the pharmacy provider a minimum of $4.23 per prescription, over the cost of the drug, to prepare and dispense a Medicaid prescription.