maximum allowable cost


Also found in: Acronyms.

maximum allowable cost

The maximum amount that a pharmacy contractor may charge for drugs.
References in periodicals archive ?
The new legislation, along with a similar bill (HB 765), undermines the use of Maximum Allowable Cost (MAC) generic drug lists that employers and public programs use to prevent them from overpaying for generic drugs and could increase Florida's prescription drug costs by $422.
In the generic market, each pharmacy benefit manager has its own maximum allowable cost lists and, in many instances, determines its own maximum prices, which the pharmacy benefit manager updates from time to time.
States are to pay pharmacies the lower of the state's estimate of the drug's acquisition cost to the pharmacy, plus a dispensing fee, or the pharmacy's usual and customary charge to the general public; for certain drugs, the FUL or the state maximum allowable cost (MAC) may apply if lower.
XYZ elected to expense the maximum allowable cost of these assets under Sec.
Critical aspects to be discussed include contract definitions, financial and performance guarantees, maximum allowable cost lists for generic drugs, and audit provisions.
Unclear generic drug pricing and maximum allowable cost payment calculations -- "While MAC list pricing is not the genesis of, nor the solution to, price volatility in the generic market, providing updated MAC prices in advance of reimbursement, in a timely manner, can help to avoid situations in which a pharmacy is under-reimbursed for a prescription due to large fluctuations in price.
Components Of The Audit Include But Are Not Limited To: Comparison Of Claims Invoice And Amounts Paid By The Commonwealth To: 1) Price Lists, Such As Maximum Allowable Cost (mac), Maximum Reimbursable Amount (mra), Average Wholesale Price (awp), Etc.
Maximum Allowable Costs, or MACs) and requires those rates to be updated frequently to reflect changes in drug costs and keep pharmacies whole.
1106 because the agency lacks data on maximum allowable costs for each MCO," the memo states.

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