What does WAC stand for in relation to drug pricing?

WAC stands for Wholesale Acquisition Cost, which represents the manufacturer's list price for a drug to wholesalers or direct purchasers, not including any discounts or rebates. This pricing information is crucial for various stakeholders in the healthcare system, including pharmacies, insurers, and healthcare providers, as it serves as a benchmark for determining reimbursement rates and overall drug pricing structures.

Understanding WAC is important for assessing the cost of medications and how they fit into broader pharmacy benefit strategies. It is typically used in the context of evaluating the cost of drugs for formulary management and negotiating prices between pharmacies and payers.