Explore BrainMass

The wholesale acquisition cost methodology

Suppose that you are a pharmaceutical benefit manager. First, briefly assess various pricing strategies that could be used to charge employers for prescription drugs. Select the strategy that you would personally recommend. Justify your choice.

Please read the following and refer to attachment.
Jones, J.D. (2003). Developing an effective generic prescription drug program. Benefits Quarterly, 19(1): 14-18.


Solution Preview

The wholesale acquisition cost methodology or pricing strategy is a unique method by which to arrive at a cost for generic drugs by primary benefit managers, and this price will be utilized as the price that employers will pay for these drugs. What is interesting about this methodology is that "it utilizes data from a company that determines the statistical average of the prices that are presently being charged for particular generic drugs by wholesalers"(Jones,J.D.), which makes this a scientifically valid and reliable ...