What is a Drug Formulary?

A drug formulary is the name of the list of prescription drugs, both generic and brand-name, that are covered by your health insurance plan.

The formulary shows each covered medication’s place within a number of tiers or categories defined as part of your plan’s pharmacy benefits. The actual number and name of the tiers varies by health plan. Each tier represents a different amount you will have to pay for the drug as part of your out-of-pocket expenses.

This list is created by an independent committee of physicians and pharmacists working with your insurer and is based on the drug’s cost, effectiveness and safety.

The purpose of a drug formulary is to provide you with readily accessible information that can guide you toward the least costly medications to effectively treat your health condition.

Drug formularies are sometimes referred to as

  • Drug Lists
  • Preferred Drug Lists
  • Prescription Drug List
  • Medication Coverage List

More Expert Articles From PAF