What is NADAC pricing?
NADAC (National Average Drug Acquisition Cost) is a weekly benchmark published by the Centers for Medicare & Medicaid Services (CMS). It reflects what pharmacies actually pay for medications, not list price. InStockRx displays NADAC pricing on every listing so you can see exactly how much you’re saving compared to what other pharmacies paid.
The National Average Drug Acquisition Cost, and why it matters for your pharmacy
Related: Strategies for brand medication savings using NADAC | NADAC vs WAC vs AWP | Calculate your NADAC savings
Last reviewed: March 2026
What is NADAC?
NADAC stands for National Average Drug Acquisition Cost. It is a weekly pricing benchmark published by the Centers for Medicare and Medicaid Services (CMS) based on actual invoice prices that retail community pharmacies report for the drugs they purchase. Unlike Wholesale Acquisition Cost (WAC), which is a manufacturer’s list price that rarely reflects what pharmacies actually pay, NADAC reflects real-world invoice data collected from a nationally representative sample of pharmacies. CMS has published NADAC data weekly since 2013 as part of its effort to improve Medicaid drug payment transparency.
NADAC vs. WAC vs. AWP: what’s the difference?
| Aspect | NADAC | WAC | AWP |
|---|---|---|---|
| Full name | National Average Drug Acquisition Cost | Wholesale Acquisition Cost | Average Wholesale Price |
| Set by | CMS (based on actual pharmacy invoices) | Manufacturer | Publishers (e.g. Medi-Span, Gold Standard) |
| Reflects | What retail pharmacies actually pay on average | Manufacturer’s list price to wholesalers | A published benchmark, not an actual transaction price |
| Updated | Weekly by CMS | Periodically by manufacturer | Periodically by publisher |
| Used for | Medicaid reimbursement; transparent marketplace pricing | Contract pricing; PBM negotiations | Insurance reimbursement; PBM pricing contracts |
| Availability | Free: CMS publishes weekly on Medicaid.gov | Subscription databases | Subscription databases |
Bottom line for independent pharmacies: AWP is the highest benchmark and rarely reflects what anyone actually pays. WAC is the manufacturer’s starting point. NADAC is the only benchmark based on what pharmacies actually paid on their invoices. InStockRx uses NADAC so you can immediately see how a listing compares to what other pharmacies paid nationally.
Pharmacies buying brand medications through InStockRx save over $12 million versus NADAC every 30 days. Calculate your estimated savings.
How InStockRx uses NADAC
InStockRx displays NADAC pricing alongside every listing so buyers can immediately see how a seller’s asking price compares to the national average acquisition cost. This gives independent pharmacies:
- A transparent benchmark to evaluate whether a listing is priced fairly
- Confidence that they are not overpaying compared to what other pharmacies pay on average
- A starting point for negotiation when submitting a cash offer
Why NADAC matters for independent pharmacies
Independent pharmacies often lack the purchasing volume to negotiate below WAC on brand medications. NADAC provides a public, independent reference that levels the information playing field. By knowing what the national average pharmacy paid for a drug, a small independent pharmacy can make more informed purchasing decisions, whether buying from a traditional distributor or on InStockRx.
Where to find NADAC data
CMS publishes NADAC data weekly at Medicaid.gov. The dataset is free and public. It lists NADAC prices by NDC for both brand and generic medications.
Common questions about NADAC
What does NADAC stand for?
Who publishes NADAC pricing?
How is NADAC different from WAC?
How does InStockRx use NADAC pricing?
Is NADAC data free and public?
See NADAC pricing on every InStockRx listing
Every medication listed on InStockRx shows the current NADAC reference price so you can compare instantly. Free to join.