Average Wholesale Price. 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.
Average Wholesale Price. 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.
Average Wholesale Price; average price that a pharmacy pays for a drug from a wholesaler.
Average Wholesale Price. AWP is a reference calculation used in some states to formulate reimbursement to pharmacies for Medicaid. AWP is published quarterly in the Red Book.
Average wholesale price. 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.
Average Wholesale Price. 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.
Average wholesale price of a drug.
Average wholesale price. A term commonly used in pharmacy contracting.