When is DAW 2 used in a pharmacy claim?

DAW 2, which stands for "Dispense as Written," is used in a pharmacy claim when the patient specifically requests a brand product instead of a generic alternative. This code indicates that the patient’s preference is a significant factor influencing the selected medication. It captures scenarios where the prescriber may not have explicitly prohibited a generic substitution but the patient prefers the branded version for personal reasons, such as perceived effectiveness or brand loyalty.

This code is essential for pharmacies and insurance payers, as it helps clarify the circumstances under which the brand-name medication is dispensed rather than a potentially more cost-effective generic. It assists in accurately processing the claim and can impact reimbursement rates and patient costs.