A prescription includes a detail influencing how medication is dispensed and its cost: the Dispense As Written (DAW) code. These codes are instructions from the prescriber that guide pharmacists on whether a generic alternative can be provided for a brand-name drug. Understanding these codes helps individuals manage their pharmaceutical care and related expenses.
What DAW Means and Why It Matters
DAW stands for “Dispense As Written,” a specific instruction from a healthcare provider to a pharmacist. This instruction dictates whether a generic substitute is permitted for a brand-name drug. Their purpose is to communicate the prescriber’s intent, guiding dispensing decisions.
DAW codes are important for both pharmacists and patients. For pharmacists, these codes provide clarity on product selection, ensuring compliance with prescriber orders. For patients, the DAW code directly influences the specific drug product received and can impact out-of-pocket costs. These codes are part of industry standards for prescription claims processing.
Understanding the Different DAW Codes
DAW codes systematically categorize the reasons for dispensing a specific medication, particularly concerning generic substitution. Each code represents a distinct scenario influencing the pharmacist’s action. These codes are essential for accurate billing and ensuring patients receive the correct medication.
DAW 0 indicates that no specific product selection is indicated by the prescriber, meaning generic substitution is generally allowed. This is the most common code when a generic equivalent is available and can be substituted.
DAW 1 signifies that substitution is not allowed by the prescriber; the brand-name drug must be dispensed. This code is used when the prescriber specifically requires the brand-name version, often due to medical necessity.
DAW 2 means that substitution is allowed, but the patient has requested the brand-name product. The pharmacist dispenses the brand-name drug because the patient prefers it.
DAW 3 indicates that substitution is allowed, but the pharmacist has selected the brand-name product. This occurs if the pharmacist determines that the brand product should be dispensed.
DAW 4 is used when substitution is allowed, but the generic drug is not in stock at the pharmacy. The brand-name drug is dispensed because the generic is not in stock at the pharmacy.
DAW 5 means substitution is allowed, and the brand-name drug is dispensed as if it were a generic. This code is used when the brand is dispensed but reimbursed at a generic rate.
DAW 6 is an override code, generally reserved for specific circumstances. Its application can vary, and it is less commonly encountered.
DAW 7 indicates that substitution is not allowed because the brand-name drug is mandated by law or regulation. Certain laws may require dispensing the brand-name version.
DAW 8 is used when substitution is allowed, but the generic drug is not available in the marketplace. This applies when a generic is not currently manufactured or distributed.
DAW 9 suggests that substitution is allowed by the prescriber, but the plan or payer requests the brand-name product. This code addresses situations where insurance policies prefer the brand-name drug.
How DAW Affects Your Prescription and Your Wallet
The DAW code on a prescription directly impacts whether a patient receives a brand-name or generic medication, which in turn affects out-of-pocket costs and insurance coverage. Generic drugs are typically more affordable than their brand-name counterparts, leading to lower co-pays or overall expenses for the patient. When a DAW code prevents generic substitution, patients may face higher costs.
Insurance companies often have policies that encourage generic substitution to manage costs within their formularies. If a brand-name drug is dispensed with a DAW code that indicates generic substitution was possible (e.g., DAW 2 for patient request), the insurance plan might still apply a higher co-pay or not cover the full cost. Conversely, a DAW 1, indicating prescriber’s medical necessity for the brand, usually leads to coverage at the brand contracted rate.
Patients can discuss DAW codes with their healthcare provider or pharmacist if they have questions about their medication or its cost. Understanding these codes empowers individuals to make informed decisions about their prescriptions. Open communication with healthcare professionals can help clarify dispensing instructions and explore cost-saving options.