What is an AWP?
An AWP (Average Wholesale Price) is a price set by each drug manufacturer (drug repackagers are licensed as manufacturers) for their products. It is comparable to the “list price” or “sticker price” (does not necessarily have any relationship to the actual sale price). Our pharmacy partner maintains the registration of its AWP’s (for generic drugs) in 5 national databases that are used by insurers to calculate reimbursement. Brand-name drugs are billed using the AWP established by the Brand manufacturers (in those same databases). All drugs in the databases are identified by a distinct National Drug Code (NDC).
