What does a formulary represent?

A formulary is a comprehensive list of prescription drugs that are covered by a specific health insurance plan. This list is curated based on the effectiveness and cost-effectiveness of the medications, and it often includes both brand-name and generic drugs. Insurance providers use formularies to manage their prescription drug costs while ensuring that their members have access to necessary medications.

By specifying which drugs are covered, formularies play a critical role in the prescribing practices of healthcare providers and the treatment options available to patients. They can also influence a patient's out-of-pocket costs, as drugs not included in the formulary may result in higher co-pays or may not be covered at all, making it essential for patients and providers to refer to the formulary when considering treatment options.