19.00%. 1.25%. 19.50%. 0.63%. 20.00%. 0.00%. *The conversion chart is
compliments of Pharmacy Providers of Oklahoma (PPOk). http://www.ppok.com/ ...
Converting from an AWP discount to a WAC equivalent discount: Two class action lawsuits were filed against First DataBank (FDB) and Medi‐Span (MS), challenging the mark‐up of WAC used to calculate AWPs for 1,442 drug products. Under the FDB/MS settlement these AWPs will now be set at 120 percent of the listed WAC, therefore artificially lowering the AWP for these drugs, which can lead to reduced payment to pharmacies. Under such a pricing rollback, the below chart demonstrates what would be needed for a WAC based equivalent discount for the pharmacy to keep from losing potential revenue on these drugs. Thus, if the pharmacy was previously paid AWP – 12%, an equivalent payment methodology would be WAC + 10%. Converting from an AWP discount to a WAC based discount* AWP Discount WAC Plus Equivalent 12.00% 10.00% 12.50% 9.38% 13.00% 8.75% 13.50% 8.13% 14.00% 7.50% 14.50% 6.88% 15.00% 6.25% 15.50% 5.62% 16.00% 5.00% 16.50% 4.38% 17.00% 3.75% 17.50% 3.13% 18.00% 2.50% 18.50% 1.88% 19.00% 1.25% 19.50% 0.63% 20.00% 0.00% *The conversion chart is compliments of Pharmacy Providers of Oklahoma (PPOk). http://www.ppok.com/
Converting from an old AWP discount to a new AWP discount (post September 26th AWP rollback): Taking into account the AWP rollback, the below chart demonstrates what new AWP discount would be needed for a pharmacy, in order to renegotiate their AWP discount to keep from losing potential revenue. Thus, if the pharmacy was paid AWP – 12% prior to the AWP rollback, then the pharmacy would need to be paid AWP – 8.33% to keep a similar payment rate after the AWP rollback. Converting from an old AWP discount to a new AWP discount (post 9/26/09 AWP rollback)* Old AWP Discount New AWP Discount Needed 12.00% 8.33% 12.50% 8.85% 13.00% 9.38% 13.50% 9.90% 14.00% 10.42% 14.50% 10.94% 15.00% 11.46% 15.50% 11.98% 16.00% 12.50% 16.50% 13.02% 17.00% 13.54% 17.50% 14.06% 18.00% 14.58% 18.50% 15.10% 19.00% 15.63% 19.50% 16.15% 20.00% 16.67% *The conversion chart is compliments of Pharmacy Providers of Oklahoma (PPOk). http://www.ppok.com/