Understanding the Rx financial trail: Who pays what, when, where and why

January 2009
Employee Benefit News;Jan2009, Vol. 23 Issue 1, p41
The article discusses the process price is determined for prescription medications. Common influences include market demand and competition in the marketplace and the price paid to pharmacies for dispensing the drug. The manufacturer examines other factors such as rebates or bonuses once the average wholesale price (AWP) is established. Generic medications are usually priced by a unique formula known as maximum allowable cost. The actions that can be taken by employers to influence the cost of medications are outlined.


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