What cost component is added last in the WAC calculation?

In the calculation of the Wholesale Acquisition Cost (WAC), the dispensing fee is the last cost component added. The WAC primarily reflects the cost of the drug itself as reported by manufacturers and does not include additional costs such as retail markup or dispensing fees.

Once the base cost of acquiring the medication has been established through the WAC, the dispensing fee is then added to account for the pharmacist’s service in preparing and dispensing the medication to the patient. This fee recognizes the operational costs associated with dispensing, such as labor and overhead, and is crucial for ensuring that the pharmacy can sustain its operations while providing pharmaceutical services.

The addition of the dispensing fee after the drug cost underlines its role as a necessary component of the overall cost that the pharmacy will bill for when dispensing medication. Thus, the correct answer reflects the proper sequencing in the formulation of total reimbursement costs in pharmacy practice, emphasizing that service fees follow the drug cost in the billing process.