Update: Deciphering potential changes to AWP -- how drug pricing works today and how it might change

Employers sponsoring pharmacy benefits could see major changes in how prescription drug prices are set as a result of ongoing litigation over Average Wholesale Price (AWP), a well-established industry pricing benchmark. The litigation involving First DataBank and Medi-Span has reached the preliminary settlement stage. If approved, the settlement will affect how prescription drugs are priced and how plan sponsors contract with pharmacy benefit providers. This Update discusses current pharmaceutical pricing, the pros and cons of AWP alternatives, and implications for pharmacy benefit sponsors.  (Update, 25 Oct 2007, 4 pages)

• Full Update (PDF)

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