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 | Coverage and payment depend on the plan |
| 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 | Subject to plan coverage rules |
| 8 | Substitution allowed, generic not available in marketplace | Product availability | Subject to plan coverage rules |
| 9 | Substitution allowed by prescriber, plan requests brand (NCPDP D.0) | Patient's plan | Follow payer instructions |
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; cost sharing depends on the plan |
How DAW Codes Affect Claims
- DAW 0 records no product selection restriction; dispensing still follows the prescription and state substitution law
- DAW 1 records the prescriber's substitution restriction; it does not guarantee brand coverage or a particular reimbursement
- 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 (43% 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 that actual coverage and cost sharing depend on the plan. CMS legacy data dictionaries may label code 9 as "Other"; use the transaction standard and current payer guidance for claim submission.
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