Which statement is true regarding DAW codes?

DAW codes, or Dispense As Written codes, are used to specify whether a pharmacy can substitute a generic drug for a prescribed brand-name drug or if the pharmacist must dispense the brand-name product as prescribed. The primary purpose of these codes is to communicate to the pharmacy staff and insurance providers about the prescribing physician's intent regarding the medication dispensed.

When the DAW code indicates that a generic substitution is permitted, the pharmacy has the option to provide a less expensive generic version to the patient, which is often beneficial for both the patient and insurance plans. This ensures that the patient's preferences and the physician's original intent are both respected in the dispensing process.

The other options do not accurately represent the purpose and function of DAW codes. The correct understanding of DAW codes is crucial for pharmacy practice, as it enhances the efficiency of medication dispensing while ensuring compliance with the prescriber’s wishes.