Which drug pricing tier is considered the lowest?

The Group Purchasing Organization (GPO) price is recognized as the lowest drug pricing tier among the options listed. GPOs negotiate with manufacturers to secure discounted prices for their member hospitals and healthcare providers by leveraging the combined purchasing power of their members. These discounts can significantly reduce the cost of medications for healthcare organizations, making GPO pricing a crucial factor in the overall drug pricing structure.

In contrast, the Average Wholesale Price (AWP), Wholesale Acquisition Cost (WAC), and Retail Pharmacy Price generally reflect higher pricing tiers. AWP serves as a benchmark for pricing but is often higher than the actual transaction prices. WAC represents the manufacturer's list price and doesn’t account for discounts or rebates that may apply. Retail Pharmacy Price is what consumers would typically pay at a pharmacy, which is influenced by various factors like markup and insurance negotiations. Thus, the GPO pricing tier stands out as the most cost-effective option in this context.