What is the meaning of DAW 4?

The term DAW 4 refers to the situation where a brand medication is dispensed, but the price of that medication is set at the generic price. This coding is often used in pharmacy claims processing to indicate that while a brand-name product was provided to the patient, it is billed or priced as if it were a generic. This is significant because it can affect the patient's out-of-pocket costs and how the insurance company processes the claim, ultimately allowing patients access to brand products at a lower price point when they might otherwise be responsible for a higher cost associated with brand dispensing.

The other meanings of DAW codes do not capture this specific scenario of pricing; options discussing prior authorization or the availability of generics look at different aspects of dispensing practices and regulations that do not align with DAW 4's definition.