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: Full Comparison | 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?
Three pricing benchmarks dominate pharmacy purchasing conversations. Here is what each one means and why the differences matter for independent pharmacies.
| 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 |
| Typically vs. NADAC | Baseline (what pharmacies pay) | Higher than NADAC — list price, rarely paid | Highest — typically WAC + 20%; used for reimbursement |
| Used for | Medicaid reimbursement; transparent marketplace pricing | Contract pricing; AWP calculations; PBM negotiations | Insurance reimbursement; PBM pricing contracts |
| Availability | Free — CMS publishes weekly on Medicaid.gov | Available via subscription databases | Available via 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 — making it the most accurate reference for true acquisition cost. InStockRx uses NADAC so you can immediately see how a listing compares to what other pharmacies paid nationally.
Pharmacies saving on brand medications through InStockRx average $91,000 per year in NADAC savings. Calculate your estimated savings with the InStockRx ROI Calculator.
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
When a pharmacy lists a medication on InStockRx, the platform shows the NADAC reference price. Buyers use this to calibrate their offers, and sellers can use it to price competitively relative to current market conditions.
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 (National Drug Code) for both brand and generic medications. Pharmacies, PBMs, state Medicaid agencies, and marketplaces like InStockRx use this data to support transparent drug pricing.
Common Questions About NADAC
What does NADAC stand for?
NADAC stands for National Average Drug Acquisition Cost. It is a weekly benchmark published by the Centers for Medicare and Medicaid Services (CMS) that reflects the average price retail community pharmacies actually pay for prescription medications.
Who publishes NADAC pricing?
NADAC is published by the Centers for Medicare and Medicaid Services (CMS), a federal agency within the US Department of Health and Human Services. CMS collects invoice data from a nationally representative sample of retail community pharmacies and publishes updated NADAC prices every week.
How is NADAC different from WAC?
WAC (Wholesale Acquisition Cost) is the manufacturer's list price to wholesalers and is set by the drug manufacturer. NADAC reflects what pharmacies actually pay on average based on real invoice data. NADAC is generally considered a more accurate reflection of true acquisition costs for retail pharmacies.
How does InStockRx use NADAC pricing?
InStockRx displays NADAC reference prices alongside marketplace listings so buyers can evaluate whether a seller's asking price is competitive relative to the national average. This gives independent pharmacies a transparent, public benchmark to inform their purchasing decisions.
Is NADAC data free and public?
Yes. CMS publishes NADAC data weekly on Medicaid.gov at no cost. The dataset is freely accessible and lists NADAC prices by NDC for both brand and generic medications.