Guide · Updated 2026-06-28
ASP vs. WAC Pricing for Wound Skin Substitutes
ASP drives Medicare reimbursement. WAC is the list price wholesalers pay. Net acquisition cost is what your contract delivers. Confusing these three is the most common AWC margin error in procurement modeling.
Average Sales Price (ASP)
CMS publishes ASP files quarterly based on manufacturer-reported net sales (less most discounts and rebates) over a two-quarter lookback. Medicare Part B reimbursement for Q-coded skin substitutes in the office setting is ASP+6%.
Wholesale Acquisition Cost (WAC)
WAC is the manufacturer-set list price to wholesalers — gross of discounts. It's a published reference price, not a real transaction price. WAC is often 10–30% above ASP.
Net acquisition cost
What your facility actually pays under contract. For Medicare-reimbursed products in the office setting, net acquisition cost should be below ASP — the spread between ASP+6% reimbursement and net cost is your operating margin.
Procurement implication
Model margin as: (Reimbursement at ASP+6%) – (Net acquisition cost). If net cost exceeds ASP+6%, you are losing money on every application. Verify quarterly because ASP shifts.
Key takeaways
- ASP drives Medicare reimbursement, not WAC.
- WAC is list; net acquisition cost is what you actually pay.
- Margin = (ASP+6%) – net cost. Recalc quarterly.
More from the playbook
Part of the 2026 Advanced Wound Graft Procurement Playbook.