In the United States, the average wholesale price (AWP) is a prescription drug term referring to the average price for medications offered at the wholesale level.[1] The metric was originally intended to convey real pricing information to third-party payers, including government prescription drug programs. Commercial publishers of drug pricing data such as Red Book have published AWP data since at least 1970. The pricing information is "based on data obtained from manufacturers, distributors, and other suppliers." However, despite the data source, published AWPs are generally inflated by 20% relative to actual market prices or wholesale acquisition cost for prescription drugs.[1][2]
For decades, AWP has been used to determine third-party reimbursement throughout the health care industry because third party payers have no other reliable method of obtaining real market prices as most contracts contain confidentiality clauses. Reimbursement amounts are typically based on AWP minus some percentage. As a result of published AWPs often exceeding real prescription drug prices, many states have brought lawsuits against pharmaceutical manufacturers and others, alleging fraud and violations of consumer protection laws.[3]
^ ab"Average Wholesale Price (AWP) as a Pricing Benchmark". Drugs.com. Jan 27, 2022. Retrieved 25 November 2019.
^. Micromedex Products. February 17, 2004. Archived from the original on May 24, 2019. Retrieved 26 November 2019.
^Dawn M. Gencarelli (August 29, 2005). (PDF). National Health Policy Forum. Archived from the original (pdf) on Dec 24, 2009. Retrieved 2009-08-06.
^Beaton, Thomas (November 6, 2017). "Improving Price Transparency around Generic Drugs for Payers". HealthPayerIntelligence. Retrieved November 25, 2019.
April 12, 2024
average, wholesale, price, united, states, average, wholesale, price, prescription, drug, term, referring, average, price, medications, offered, wholesale, level, metric, originally, intended, convey, real, pricing, information, third, party, payers, including. In the United States the average wholesale price AWP is a prescription drug term referring to the average price for medications offered at the wholesale level 1 The metric was originally intended to convey real pricing information to third party payers including government prescription drug programs Commercial publishers of drug pricing data such as Red Book have published AWP data since at least 1970 The pricing information is based on data obtained from manufacturers distributors and other suppliers However despite the data source published AWPs are generally inflated by 20 relative to actual market prices or wholesale acquisition cost for prescription drugs 1 2 For decades AWP has been used to determine third party reimbursement throughout the health care industry because third party payers have no other reliable method of obtaining real market prices as most contracts contain confidentiality clauses Reimbursement amounts are typically based on AWP minus some percentage As a result of published AWPs often exceeding real prescription drug prices many states have brought lawsuits against pharmaceutical manufacturers and others alleging fraud and violations of consumer protection laws 3 History editIt was created in 1969 4 See also editNational Average Drug Acquisition Cost Wholesale acquisition cost WAC Average Manufacturer Price AMP References edit a b Average Wholesale Price AWP as a Pricing Benchmark Drugs com Jan 27 2022 Retrieved 25 November 2019 AWP Policy Micromedex Products February 17 2004 Archived from the original on May 24 2019 Retrieved 26 November 2019 Dawn M Gencarelli August 29 2005 One Pill Many Prices Variation in Prescription Drug Prices in Selected Government Programs PDF National Health Policy Forum Archived from the original pdf on Dec 24 2009 Retrieved 2009 08 06 Beaton Thomas November 6 2017 Improving Price Transparency around Generic Drugs for Payers HealthPayerIntelligence Retrieved November 25 2019 Retrieved from https en wikipedia org w index php title Average wholesale price amp oldid 1190507648, wikipedia, wiki, book, books, library,
