Glossary Category: Drug Pricing & Pharmacy Operations
These terms explain how 340B pricing works in practice and where operational complexity creates risk, especially in contract pharmacy and TPA workflows. Use these definitions to interpret pricing discussions, purchasing ratios, and compliance controls.
The average price paid to a drug manufacturer by wholesalers for drugs distributed to retail community pharmacies, used as the basis for calculating the 340B ceiling price and Medicaid rebates.
A per-unit drug pricing figure calculated by CMS that is subtracted from the Average Manufacturer Price (AMP) to determine the 340B ceiling price and used by state Medicaid programs to calculate manufacturer rebates.
The list price a manufacturer charges a wholesaler or direct purchaser for a drug, before any discounts, rebates, or reductions. WAC is a publicly available benchmark used in drug pricing and reimbursement calculations.
The lowest price a manufacturer charges any purchaser for a covered outpatient drug, reported to CMS and used to calculate Medicaid rebates. 340B prices are excluded from the best price calculation.
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