CVS Pharmacy Technician Certification Practice Test

Why is it important to use the correct DAW code when filling prescriptions?

1. To comply with state laws

2. To ensure appropriate reimbursement from Third Party plans

3. To avoid medication errors

4. To expedite the prescription filling process

The correct answer is: To ensure appropriate reimbursement from Third Party plans

Using the correct Dispense As Written (DAW) code when filling prescriptions is crucial primarily because it facilitates appropriate reimbursement from third-party insurance plans. Each DAW code indicates specific instructions from the prescriber regarding how the medication should be dispensed, whether generically, as a brand, or under specific circumstances. Insurance companies use the DAW code to determine what they will pay for a particular medication based on the prescriber's direction. Correctly applying the DAW code ensures that the pharmacy receives the maximum reimbursement allowed under the patient’s insurance plan, which is vital for the financial viability of the pharmacy. Furthermore, it protects the patient by making sure they receive the medication as prescribed, potentially preventing increased out-of-pocket costs for the patient. While compliance with state laws, avoiding medication errors, and expediting the prescription filling process are also important aspects of pharmacy practice, these factors are secondary to the critical role that the DAW code plays in the reimbursement process. Therefore, the emphasis on the DAW code is primarily about managing pharmacy operations and ensuring that both the pharmacy and the patient are adequately supported financially.