Pharmaceutical Terms Defined: Part 2

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In a recent blog, we defined five terms commonly used by members of our team in order to help you better understand our industry. Although those five terms will make reading pharmaceutical literature and understanding hot topics easier on your part, alone, they simply aren't enough. That is why today, we would like to introduce you to an additional five terms and their definitions! See below:

Prior Authorization (PA): The approval process/clinical criteria required in order to obtain particular drugs or certain amounts of others. Criteria is typically based on FDA manufacturer approved guidelines. As more expensive drugs are launched, this clinical criteria is expanding significantly, especially with Hepatitis C drugs.

Quantity Limit (QL): The quantity of medication that is recommended by the pharmaceutical manufacturer to be dispensed to a patient over a certain period of time at a particular copayment, coinsurance or deductible.

Rx: Symbol or acronym meaning "medical prescription."

Usual and Customary Price (U&C): The price that a pharmacy charges when there is no health insurance or other coverage for the purchase of prescriptions. This price varies from pharmacy to pharmacy on any given day.

Wholesale Acquisition Cost (WAC): The list price of a drug paid by a wholesaler, distributor or other direct account, before any rebates, discounts, allowances or other price concessions are offered by the supplier of such drugs.

Have you come across industry terms that you are still unsure about? Visit us on our Facebook or Twitter page and let us know! We would be pleased to provide you with the definition so you can better understand additional information on the topic you are seeking.

Since 1993, we have exclusively provided intelligent solutions to our clients in order to help them effectively manage their pharmacy benefit costs. Due to the combined effort of our actuaries, financial analysts, clinical pharmacists, attorneys, HIPAA Compliance Officers and other industry experts, we have found great success in finding our clients the rebates and discounts they deserve through their pharmacy benefit plans. For more information on how we can help, please visit us on our website or contact us at (888) 797-2479 today!