What is a formulary, and how do insurance companies save money by using a formulary for prescription drug coverage?

What will be an ideal response?


A formulary is a list of medications in each category of medication that the insurance company will pay the most for.For example, a medication on the formulary may have a $10.00 copayment, and medications that are not on the formulary may have a $25.00 copayment or not be covered at all.Formularies save money for insurance companies who contract with pharmaceutical companies to get lower prices for having the medication on their formulary.

Health Professions

You might also like to view...

Dentists can identify eating disorder patients suffering from ________ due to enamel erosion

Fill in the blank(s) with correct word

Health Professions

Which of the following credentials is obtained through AAPC?

A. CCS B. CPC C. CMA D. RMA

Health Professions

Following the interview, a thank you letter should be sent ________ day(s).

A. the same B. within five C. within 10 D. within 15

Health Professions

________ ignites on contact with air.

A) Yellow magnesium B) White beryllium C) White phosphorus D) Blue talc

Health Professions