Which of the following describes Average Sales Price (ASP)?

• A. The maximum price per tablet an insurer or PBM will pay.
• B. Derived from the sales from manufacturers to all purchasers.
• C. The price the pharmacy pays after discounts.
• D. The pharmacy's retail price for cash paying customers.

Answer: (B)

Average Sales Price is the benchmark used to reimburse certain drugs under Medicare Part B. It reflects the actual average price that manufacturers receive from all purchasers across the market—wholesalers, providers, and other buyers—based on real sales transactions. This makes ASP a market-wide average rather than a single payer’s negotiated rate, a pharmacy’s discount price, or a cash retail price for patients. Because Part B reimbursement is set as ASP plus a small fee, the concept hinges on the price manufacturers charge to the broad mix of purchasers, not on the price a pharmacy pays after discounts or the price listed for cash customers.