What Are DAW Codes
Dispense As Written (DAW) codes are numeric codes used in pharmacy billing to indicate why a specific product was dispensed. These codes tell the insurance company whether a brand-name drug was dispensed instead of a generic and the reason behind that decision. Understanding DAW codes is important for both the PTCE and daily prescription processing.
Common DAW Codes
- DAW 0 - No product selection indicated. The pharmacist may substitute a generic equivalent.
- DAW 1 - Substitution not allowed by prescriber. The prescriber has specifically indicated that the brand name must be dispensed.
- DAW 2 - Substitution allowed, but patient requested brand product. The patient specifically asked for the brand-name medication.
There are additional DAW codes used in specific situations, but DAW 0, 1, and 2 are the most commonly encountered in daily practice and on the PTCE.
Why DAW Codes Matter
DAW codes directly affect insurance billing and patient copays. A prescription filled with a brand-name drug when a generic is available will typically cost the patient more. Using the correct DAW code ensures accurate billing and proper documentation of why the brand product was dispensed.
Exam Relevance
The PTCE may present scenarios where you need to identify the correct DAW code based on a situation. For example, a prescriber writes "brand necessary" on a prescription. Knowing that this corresponds to DAW 1 demonstrates your understanding of prescription processing and billing procedures.
Practical Application
When entering prescriptions, always check whether the prescriber has indicated brand-name dispensing. If no indication is present, DAW 0 is typically used, allowing generic substitution. Correct DAW code selection prevents billing errors and insurance claim rejections.