DAW Codes (Dispense As Written)
DAW codes are standardized numeric codes (0-9) used on pharmacy claims to indicate whether a brand-name or generic drug should be dispensed and who is requesting the specific product.
Exam Tip
DAW 0 = no preference (default). DAW 1 = prescriber wants brand. DAW 2 = patient wants brand. Know these three codes cold for the ExCPT.
What Are DAW Codes?
DAW (Dispense As Written) codes are standardized single-digit codes transmitted with pharmacy insurance claims to indicate the dispensing status of brand vs. generic medications. They inform the insurance company why a particular product was dispensed and affect reimbursement.
DAW Code Reference Table
| DAW Code | Meaning | Who Requested | Reimbursement Impact |
|---|---|---|---|
| 0 | No product selection indicated | Default | Standard reimbursement |
| 1 | Substitution not allowed by prescriber | Prescriber writes "DAW" or "Brand Medically Necessary" | Brand reimbursed at brand rate |
| 2 | Substitution allowed, patient requested brand | Patient | Patient may pay brand copay |
| 3 | Substitution allowed, pharmacist selected brand | Pharmacist | Varies by plan |
| 4 | Substitution allowed, generic not in stock | Pharmacy | May need documentation |
| 5 | Substitution allowed, brand dispensed as generic | Pharmacy | Brand at generic price |
| 6 | Override | Varies | Varies |
| 7 | Substitution not allowed, brand mandated by law | State law | Brand reimbursed |
| 8 | Substitution allowed, generic not available in marketplace | N/A | Brand reimbursed |
| 9 | Other | Varies | Varies |
Most Commonly Tested DAW Codes
| Code | Key Point |
|---|---|
| DAW 0 | Default code; generic substitution is permitted |
| DAW 1 | Prescriber requests brand only (writes "DAW" on Rx) |
| DAW 2 | Patient requests brand (patient pays higher copay) |
How DAW Codes Affect Claims
- DAW 0 allows the pharmacy to dispense either brand or generic
- DAW 1 requires the insurance to cover the brand at the brand price
- DAW 2 means the patient specifically requested brand and typically pays a higher cost share
- DAW codes are part of the NCPDP billing standard
Exam Alert
DAW codes are frequently tested in the Dispensing Process domain (55% of ExCPT). Focus on DAW 0 (default/no preference), DAW 1 (prescriber requests brand), and DAW 2 (patient requests brand). Know who is making the request and how it affects the patient's copay.
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ExCPT Study Guide 2026-2027: Complete CPhT Review + 1440 Questions and Detailed Answer Explanations for the NHA Certified Pharmacy Technician Exam (12 Full-Length Exams)
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Study guide on MometrixRelated Terms
Adjudication (Pharmacy)
Adjudication is the real-time electronic process by which a pharmacy submits a prescription claim to a patient's insurance plan and receives an immediate approval, rejection, or request for additional information.
Formulary
A formulary is a list of prescription drugs approved for coverage by a health insurance plan, pharmacy benefit manager (PBM), or healthcare institution, organized into tiers that determine patient cost-sharing.
NDC Number (National Drug Code)
The NDC (National Drug Code) is a unique 10-digit, 3-segment numeric identifier assigned to each medication product in the United States, identifying the labeler, product, and package size.
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