What does DAW 0 indicate?

Prepare for the Pharmacy Billing and Reimbursement Test. Explore flashcards and multiple-choice questions with detailed explanations. Ensure exam readiness!

DAW 0 indicates that generic substitution is permitted by the prescriber. This code suggests that the prescriber has no preference for a specific brand-name medication and allows the pharmacist to dispense a generic equivalent if available. The use of DAW 0 is essential for reimbursement processes, as it informs the insurance provider that a generic option may be claimed for payment, potentially resulting in lower costs for both the patient and the insurance provider. This designation supports cost-effective medication management while still adhering to the prescriber’s original intent for treatment.

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