What is the List Price that wholesalers pay before any discounts or rebates are applied?

The term that refers to the List Price that wholesalers pay before any discounts or rebates are applied is known as the WAC, or Wholesale Acquisition Cost. WAC represents the manufacturer's list price for a drug to wholesalers or direct purchasers, not including discounts or rebates. This price serves as a baseline for pricing negotiations and other pricing metrics within the supply chain.

In contrast, the other terms listed have different meanings: ASP (Average Sale Price) is a measure that reflects the average price paid to manufacturers for drugs sold to providers, factoring in discounts. MAC (Maximum Allowable Cost) establishes the maximum price that a pharmacy can be reimbursed for a particular drug, which can depend on various factors including the cost of the drug across different pharmacies. AWP (Average Wholesale Price) is an outdated measure that used to be a standard for pricing, but it has largely been replaced by other measures like WAC and is generally noted to be higher than the actual market price.

Understanding these differences is crucial as they impact pricing, reimbursement, and overall costs within pharmacy benefits management.