MAC is defined as

MAC is defined as

• A. WAC
• B. ASP
• C. FUL
• D. MAC

Answer: (D)

Maximum Allowable Cost is the maximum amount a payer will reimburse for a drug, typically for multisource generic products. It acts as a cost cap to control spending, so a pharmacy is reimbursed up to MAC (often plus a dispensing fee) rather than the exact price paid, keeping payments within a standardized limit. Other price terms refer to different concepts: Wholesale Acquisition Cost is the price wholesalers charge pharmacies, Average Sales Price is a price used in reimbursement calculations, and Federal Upper Limit is a Medicaid price cap for certain drugs.

Maximum Allowable Cost is the maximum amount a payer will reimburse for a drug, typically for multisource generic products. It acts as a cost cap to control spending, so a pharmacy is reimbursed up to MAC (often plus a dispensing fee) rather than the exact price paid, keeping payments within a standardized limit. Other price terms refer to different concepts: Wholesale Acquisition Cost is the price wholesalers charge pharmacies, Average Sales Price is a price used in reimbursement calculations, and Federal Upper Limit is a Medicaid price cap for certain drugs.