Under the Medicare catastrophic coverage act, payment for prescription drugs is limited to the lowest of the pharmacy's actual charge, the sum of the AWP for the drug plus an administrative allowance, or effective 1992, the 90th percentile of pharmacy charges.
The standardized cost of a prescription medication that is calculated by averaging the cost of an undiscounted pharmaceutical charged to a pharmacy provider by a large group of pharmaceutical wholesale suppliers.
AWP is a reference calculation used in some states to formulate reimbursement to pharmacies for Medicaid. AWP is published quarterly in the Red Book.
The AWP is a published wholesale price or "list price" suggested by the manufacturer of the drug. Although the AWP does not capture the actual transaction prices, it serves as a reference for pricing, negotiations, and reimbursements.
(AWP) A national average of list prices charged by the wholesaler to pharmacies.
Generally, the manufacturer's suggested retail price of a drug. Payers might use the AWP to decide how much to pay for a treatment.
A national average of list prices charged by wholesalers to pharmacies. AWP is sometimes referred to as a "sticker price" because it is not the actual price that larger purchasers normally pay. For example, in a study of prices paid by retail pharmacies in eleven States, the average acquisition price was 18.3 percent below AWP. Discounts for HMOs and other large purchasers can be even greater. AWP information is publicly available.
suggested retail price determined by the manufacturer.
The price that drug manufacturers suggest wholesalers charge retail pharmacies for their products.
A term commonly used in pharmacy contracting.
The Average Wholesale Price (AWP) is the suggested list price for a drug product provided by First Databank based on surveys of wholesalers. Large institutions generally negotiate lower prices than AWP.
The average wholesale price, or AWP, of prescription drugs was intended to represent the average price at which wholesalers sell drugs to physicians, pharmacies, and other customers. In practice, it is a figure reported by commercial publishers of drug pricing data.
