AWP (Average Wholesale Price) and Industry’s Search for a Viable Replacement Pricing Benchmark
William A. Davis
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
• How to minimize risk under current system and evolving potential future system
– Where are we in this process?
– When will it be over?
• When and why is AWP still used for reimbursement?
• Understanding what constitutes WAC and how it is used
– Other terms manufacturers substitute for WAC
• Setting AWP and WAC
– The role of 3rd party pricing compendia with respect to AWP and WAC
• Examining the effect of AWP litigation on the continued use of this pricing methodology
– Lessons learned from the AWP cases before Judge Saris
Should we be modifying behavior?
– Update on state AWP cases
• Assessing the impact of health care reform on different pricing benchmarks (AMP, AWP, and WAC)
• What replacement metric should take the place of AWP and what the challenges are associated with those metrics?
• Pharmacy acquisition costs