AWP

Medical abbreviation · Pharmacy

AWP
Stands forAverage wholesale price
CategoriesMedical

AWP stands for Average wholesale price, a pharmacy abbreviation.

Published benchmark price for prescription drugs that historically served as the starting point for pharmacy reimbursement formulas, such as "AWP minus 18 percent". Despite its name, it is a list price that few buyers actually pay.

Example: The contract reimburses brand drugs at AWP minus 17% plus a $1 dispensing fee.

Usage notes

AWP is often joked about as "ain't what's paid". It is commonly set at about 20 percent above the wholesale acquisition cost. Lawsuits over inflated AWPs in the 2000s pushed Medicaid programs toward acquisition-cost benchmarks such as NADAC.

More pharmacy abbreviations

  • ANDA – Abbreviated New Drug Application
  • APhA – American Pharmacists Association
  • API – Active pharmaceutical ingredient
  • aq – Aqueous
  • ARCOS – Automation of Reports and Consolidated Orders System
  • ASHP – American Society of Health-System Pharmacists
  • BLA – Biologics License Application
  • BOP – Board of pharmacy
  • BP – British Pharmacopoeia
  • BPMH – Best possible medication history
  • BTC – Behind the counter
  • BUD – Beyond-use date

See all 134 pharmacy abbreviations →

This entry is for general education and is not medical advice. Abbreviation use varies between institutions; always confirm in context.