Is the Average Acquisition Cost (AAC) typically lower than the Average Wholesale Price (AWP)?

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The Average Acquisition Cost (AAC) is indeed typically lower than the Average Wholesale Price (AWP). AAC represents the average cost that pharmacies pay for their drugs, accounting for various discounts, rebates, and other pricing arrangements they may receive from manufacturers, wholesalers, or group purchasing organizations. In contrast, AWP is generally considered a list price and does not reflect the actual prices paid by pharmacies, making it often higher than AAC.

AWP is frequently used as a benchmark for reimbursement rates by insurers and government programs, which can lead to a discrepancy where pharmacies receive less than what is suggested by AWP. Given this context, AAC usually reflects the real costs incurred by the pharmacy and results in a lower figure than the AWP, substantiating the assertion that the AAC is typically lower.

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