DAW codes 0 through 9: who selected the product.

At the counter: DAW/Product Selection Code identifies why the dispensed product was selected. Code 1 says the prescriber prohibited substitution; 2 says the patient chose the product; 9 says the plan requested it. Match the value to the actual selection decision, the current payer instruction, and the documentation in the record.

DAW is NCPDP field 408-D8, formally the Dispense As Written (DAW)/Product Selection Code. NCPDP defines the field as a code indicating whether the prescriber's instructions about generic substitution were followed. The directory below keeps each published meaning beside its plain-language interpretation and operational risk.

DAW codes 0 through 9

The short titles below are reproduced in NCPDP's July 2017 Medicaid reimbursement white paper and in a July 2025 Medi-Cal Rx FAQ. NCPDP's June 2026 public guidance says the authoritative value definitions are in the current External Code List and applies the field to reference products and interchangeable biosimilars. Use that current standard and the receiving payer's rule when either is more specific.

0No Product Selection Indicated

No special product-selection condition is asserted. NCPDP notes this can be appropriate for single-source brand, co-branded or co-licensed, and generic products.

Use: the default when no other code describes the decision. A brand-preferred program can instead require DAW 9.

1Substitution Not Allowed by Prescriber

The prescriber directed that the prescribed brand or reference product be dispensed; current NCPDP wording carries a medically-necessary assertion.

Use: retain the prescriber's own notation in the form state law and the payer accept. Patient preference does not support DAW 1.

2Substitution Allowed: Patient Requested Product Dispensed

The prescriber allowed substitution, but the patient requested the dispensed product.

Use: document the request and the member's acceptance of any plan-specific cost. The code does not itself establish the copay or cost difference.

3Substitution Allowed: Pharmacist Selected Product Dispensed

The prescriber allowed substitution and the pharmacist selected the product.

Use: confirm that the payer supports the value and that the selection record explains why it applies.

4Substitution Allowed: Generic Drug Not in Stock

A marketed generic exists but is not stocked at this pharmacy.

Use: document the local inventory condition. Do not use it for a marketplace-wide shortage or discontinuation.

5Substitution Allowed: Brand Drug Dispensed as a Generic

The brand package is dispensed, billed, and priced on the generic basis.

Use: only under a payer rule that supports this pricing treatment. Louisiana Medicaid is one published program example.

6Override

A payer-defined override rather than a general explanation for product selection.

Use: only when the current payer instruction explicitly tells the pharmacy to submit it; never as a catch-all.

7Substitution Not Allowed: Brand Drug Mandated by Law

The prescriber allowed substitution, but current law or regulation requires the brand product in the applicable situation.

Use: verify the current jurisdiction and legal basis. New York Medicaid also publishes a program-specific DAW 7 path; do not generalize it nationally.

8Substitution Allowed: Generic Drug Not Available in Marketplace

The generic is unavailable in the marketplace, rather than merely missing from one pharmacy's stock.

Use: retain current availability or payer evidence. Local out-of-stock evidence supports DAW 4, not 8.

9Substitution Allowed by Prescriber but Plan Requests Brand

The prescriber allowed substitution, but the plan asks for the brand or reference product.

Use: retain the paid response, reject message, formulary notice, or current plan instruction. NYRx's Brand Less Than Generic program is a current published example.

NCPDP, Proper Use of the Telecommunication Standard in Medicaid Reimbursement Methodologies, v1.2, July 2017, Appendix A; Medi-Cal Rx DAW / Brand Medically Necessary FAQ, July 18, 2025; NCPDP v73, June 2026.

Do not use DAW A

DAW A was introduced for multi-payer brand or reference-product formulary conflicts, but NCPDP's Version D and Above guidance, v73, June 2026, says the value was sunset in July 2025. Unsupported submission should reject with 8K or 22.

For a multi-payer conflict, NCPDP directs the pharmacy to submit DAW 9 to each payer that requests the brand or reference product and let the payer's coordination-of-benefits rules resolve the claim. That is current NCPDP implementation guidance, not permission to force DAW 9 when a payer did not request the product.

DAW 1 versus DAW 2: who made the selection?

DAW 1 asserts a prescriber direction and medical necessity under current NCPDP wording. Preserve the prescriber's notation in the form the applicable state law and payer recognize. DAW 2 says the prescriber allowed substitution and the patient requested the dispensed product. Preserve the patient's request and any cost acknowledgement the contract requires.

The submitted code does not determine the member's cost by itself. Copays, brand-versus-generic differences, waivers, and reimbursement methods are plan-specific; check the plan response or current benefit information.

DAW 9: a plan-requested brand

NYRx's Brand Less Than Generic program update, effective April 23, 2026, directs pharmacies to submit DAW 9 for listed products. It says those drugs do not require “Dispense as Written” or “Brand Medically Necessary” on the prescription, carry a generic copayment, and pay at the brand rate or usual and customary, whichever is lower. This is a current New York Medicaid program rule, not a universal DAW 9 reimbursement formula.

Louisiana Medicaid's October 2023 POS vendor specification restates DAW 9 as “Preferred brand over generic drugs.” Some CMS Part D analytic-file documentation labels code 9 “Other”; that data-file label is not a claim-entry instruction. Operational claims should follow the current transaction standard and payer instruction.

DAW 4 versus DAW 8: local stock or market availability?

DAW 4 is a local inventory statement: a generic exists but this pharmacy does not stock it. DAW 8 is a market-availability statement: the generic is unavailable in the marketplace. Retain evidence with the scope the code asserts. A wholesaler screen or empty shelf at one pharmacy does not by itself establish marketplace-wide unavailability.

Reject 22 and related payer workflows

Michigan Medicaid / Prime Therapeutics' reject-code reference publishes 22 as “M/I Dispense as Written Code/Product Selection Code,” AJ as “Generic Drug Required,” and 8K as “DAW Code Value Not Supported.” A syntactically valid code can still be unsupported by the program.

NYRx's Brand Less Than Generic guidance returns 22 when the pharmacy submits a value other than the required DAW 9, or an allowed DAW 1 with Brand Medically Necessary. By contrast, Medi-Cal Rx's July 18, 2025 FAQ routes a Brand Medically Necessary request through reject 75 and prior authorization. Similar clinical context does not guarantee the same reject or resolution workflow.

Documentation and audit boundary

A nonzero value that the record does not support may be challenged during audit. PAAS National's June 11, 2024 audit guidance says PBMs may flag high nonzero-DAW use and lists an incorrect submitted DAW as a recurring finding. This secondary audit source explains the operational risk; it does not replace the NCPDP definition or payer contract.

• Prescriber selected: retain the prescriber's own notation in the accepted form.
• Patient selected: document the request and any required cost acknowledgement.
• Plan selected: retain the current plan instruction or claim response.
• Availability selected: distinguish local stock evidence from marketplace evidence.

State substitution law: structural guidance only

States differ in how they permit or require substitution and in the form of a no-substitution instruction. The general review cited by this page is from 2008 and is useful only for understanding structures such as positive formularies, negative formularies, and states with neither. It is not current legal authority for any state.

Verify today's requirement with the current board of pharmacy, statute, regulation, and payer instruction. This page does not establish that a particular DAW value satisfies current state law. NCPDP's field definition and a jurisdiction's substitution law answer different questions.