What is the Wholesale Acquisition Cost (WAC)?

The Wholesale Acquisition Cost (WAC) refers specifically to the price that a wholesaler pays to a manufacturer to acquire a drug. This cost does not include any discounts, rebates, or other additional fees that may be part of the overall transaction. Understanding WAC is crucial in the context of pharmacy billing and reimbursement as it serves as a baseline cost for medications before they reach pharmacies, and it can impact pricing negotiations and reimbursement calculations.

This definition emphasizes the role of the WAC in the pharmaceutical supply chain, differentiating it from the prices that patients pay or the retail price that pharmacies set. While other choices touch on aspects of drug pricing, they do not accurately reflect the specific meaning of WAC in the context of pharmaceutical transactions.