Wholesale Acquisition Cost (WAC)
Definition
Wholesale Acquisition Cost (WAC) is the manufacturer’s published list price for a drug sold to wholesalers or direct purchasers in the United States. WAC is publicly available and serves as a pricing benchmark in the pharmaceutical industry, though it does not reflect actual transaction prices, which are typically lower due to discounts, rebates, and other price concessions.
In the 340B context, WAC is relevant as a reference point for understanding the magnitude of 340B discounts. The 340B ceiling price is typically well below WAC, representing the program’s savings for covered entities. For hospital-type entities subject to the GPO Prohibition, WAC pricing (or sub-WAC pricing) may be the alternative to GPO purchasing for non-340B eligible drugs.
WAC is also used as a basis for Medicaid reimbursement in some states and as a reference in split-billing software configurations. Understanding the relationship between WAC, AMP, and the 340B ceiling price helps covered entities evaluate their drug pricing across different purchasing channels.
Frequently Asked Questions
Why Wholesale Acquisition Cost (WAC) Matters
WAC is the baseline price against which 340B savings are measured. Understanding WAC helps covered entities quantify the value of their 340B program and evaluate pricing across different purchasing channels.
How Virtue 340B Uses It
Virtue 340B references WAC as part of program optimization and pricing analysis work, helping covered entities understand the full value of their 340B savings and identify opportunities to improve their purchasing strategies.