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  • Writer's pictureJake Baker

Continuing to foster Prescription Drug Transparency through NADAC Pricing

In the realm of prescription drug pricing transparency, the utilization of NADAC (National Average Drug Acquisition Cost) pricing shines as a superior alternative to the commonly employed AWP (Average Wholesale Price) pricing model. NADAC pricing offers distinct benefits that foster a clearer understanding of medication costs for both healthcare providers and patients.


NADAC pricing stands out due to its inherent transparency. Unlike AWP, NADAC prices are publicly accessible and regularly updated by the Centers for Medicare & Medicaid Services (CMS), enabling stakeholders to access real-world data on medication acquisition costs. This standardized metric, derived from actual pharmacy transactions, ensures consistency and accuracy in price comparison across different pharmacies and regions.


The NADAC model eradicates ambiguities tied to AWP, where inflated list prices often diverge from actual costs due to hidden discounts and rebates. By providing a realistic reflection of drug acquisition expenses, NADAC empowers patients and healthcare professionals to make informed decisions regarding prescription fulfillment, ultimately fostering competition among pharmacies.


In essence, NADAC pricing offers an open window into the actual costs of prescription drugs, enabling transparency, informed decision-making, and fair market competition. This shift from AWP to NADAC represents a pivotal step towards alleviating prescription drug pricing concerns and enhancing affordability in the healthcare landscape.


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