PBM Negotiations
What is the difference between WAC, AWP, and NADAC?
WAC (Wholesale Acquisition Cost) is the manufacturers list price to wholesalers. AWP (Average Wholesale Price) is a benchmark roughly 20% above WAC, used primarily for reimbursement calculations. NADAC (National Average Drug Acquisition Cost) reflects actual pharmacy purchase prices surveyed by CMS. The spread between these benchmarks drives pharmacy economics.