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pharmacy spread pricing

pharm_spread
pharmacy·Updated Jul 22, 2026

Definition

ISO-11179 Definition

The difference between what a pharmacy benefit manager charges a health plan for a prescription drug and what the PBM actually pays the dispensing pharmacy, representing a revenue source for PBMs not disclosed in traditional fee-for-service PBM contracts. Spread pricing has been subject to significant regulatory scrutiny in Medicaid managed care with many states requiring PBMs to use pass-through pricing models that eliminate spread.

Standard Abbreviation

pharm_spread

Category

pharmacy

Production DDL — FACT_PHARMACY_CLAIM

FACT_PHARMACY_CLAIM.sql
CREATE OR REPLACE TABLE FACT_PHARMACY_CLAIM (
    rx_clm_key      INTEGER        NOT NULL  -- surrogate key,
    rx_clm_id       VARCHAR(50)    NOT NULL  -- pharmacy claim ID,
    mbr_key         INTEGER        NOT NULL  -- FK to DIM_MEMBER,
    ndc_cd          VARCHAR(11)              -- national drug code,
    drug_nm         VARCHAR(255)             -- drug name,
    drug_gnrc_ind   CHAR(1)                  -- generic indicator,
    days_sply_cnt   SMALLINT                 -- days supply count,
    qty_dspnd       DECIMAL(10,3)            -- quantity dispensed,
    rx_fill_dt      DATE                     -- fill date,
    formulary_tier  SMALLINT                 -- formulary tier,
    rx_cost_amt     DECIMAL(10,2)            -- total drug cost,
    mbr_pay_amt     DECIMAL(10,2)            -- member pay amount,
    plan_pay_amt    DECIMAL(10,2)            -- plan pay amount,
    prior_auth_ind  CHAR(1)                  -- prior auth required,
    load_dt         TIMESTAMP_NTZ  NOT NULL  -- load timestamp
);

Standard Snowflake DDL for the canonical pharmacy table. Convert to BigQuery or Databricks →

Why This Term Matters

Pharmacy data is among the most regulated and codified data in healthcare, governing controlled substances, PBM adjudication, and Medicare Part D reporting. A data engineer fluent in pharmacy terminology builds pipelines that correctly parse NDC codes, validate DEA numbers, and detect drug utilization anomalies before they reach compliance teams. Errors in pharmacy field definitions frequently trigger PBM contract disputes and CMS audit findings.

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