How to Use NADAC Trends to Improve Pharmacy Margins
By Dylan Sanson, Pharmacist & Pharmacy Manager · Published
For independent pharmacy owners, every cent per unit matters. With reimbursement rates shrinking and PBM pressure mounting, understanding your true drug acquisition cost is critical — and that's exactly what NADAC provides.
What Is NADAC and Why Should You Track It?
NADAC (National Average Drug Acquisition Cost) is published weekly by CMS and reflects actual invoice prices pharmacies pay. Unlike AWP, which is often inflated, NADAC gives you a transparent, market-based cost benchmark. By monitoring NADAC trends with a NADAC lookup tool, you can spot price drops before your wholesaler passes them along.
Three Ways to Use NADAC Data for Better Margins
1. Audit Your Wholesaler Invoices
Compare what you're paying per unit against the current NADAC price. If your cost consistently exceeds NADAC, you have negotiating leverage — or it may be time to explore secondary wholesalers.
2. Identify Underwater Claims
Cross-reference PBM reimbursement against NADAC to find drugs where you're dispensing at a loss. Our Pro plan ($29/mo) includes price change alerts so you're notified the moment a NADAC price shifts significantly.
3. Time Your Generic Purchases
Generic drug prices can swing 20–50% within weeks. By tracking NADAC price history, you can stock up when prices dip and reduce orders when costs spike.
Getting Started
Start by searching your top-dispensed drugs on NADAC Lookup. Compare the NADAC per-unit price against your actual acquisition cost. Even saving $0.01/unit on high-volume generics like Metformin or Lisinopril can mean hundreds of dollars per month in improved margin.