What does the term Selling Price by manufacturers minus most discounts, rebates, and other price concessions refer to?

The term "Selling Price by manufacturers minus most discounts, rebates, and other price concessions" accurately describes the Average Selling Price (ASP). ASP is a measure of the average price that a manufacturer receives for a drug after accounting for various discounts and allowances. It reflects the actual market pricing and provides a more realistic valuation of drug costs compared to list prices, which do not consider these financial adjustments.

In the context of drug pricing, ASP is significant because it is often used for reimbursement purposes and for determining payment limits under government programs. Understanding ASP helps stakeholders, such as healthcare providers and payers, to navigate the complexities of drug pricing and reimbursement dynamics.

The other terms represent different concepts in pharmaceutical pricing. Average Wholesale Price (AWP) generally refers to the average price at which wholesalers sell medications to pharmacies but lacks the real-world adjustments that ASP accounts for. Wholesale Acquisition Cost (WAC) represents the manufacturer's list price for a drug without discounts or concessions. The term "DP" isn't widely recognized in the standard pharmaceutical pricing lexicon, which further reinforces that ASP is the relevant and correct term in this context.