What is the purpose of the National Drug Code (NDC)?

The purpose of the National Drug Code (NDC) is to uniquely identify medications. Each NDC is a unique numeric identifier that serves several essential functions within the healthcare and pharmaceutical sectors.

The NDC consists of three segments: the labeler code, which identifies the manufacturer or distributor; the product code, which specifies the formulation, strength, and dosage form; and the package code, which indicates the package size and type. This unique identification facilitates accurate tracking of drugs across various systems, ensuring that the right medications are administered to patients.

Moreover, healthcare providers, pharmacists, and insurance companies utilize the NDC for billing, inventory management, and ensuring that patients receive the correct medications. By uniquely identifying drugs, the NDC system helps minimize errors and enhances patient safety in drug dispensing and administration.

The other options, while related to drug management and pharmaceutical systems, do not accurately reflect the primary purpose of the NDC. Tracking prescriptions, classifying drugs by therapeutic use, or specifying pricing tiers are functions that may involve the NDC system but are not the core intent of the NDC itself.