If you have a prescription drug plan or your health insurance includes prescription drugs, the formulary is the list of drugs that the plan covers. Formularies are generally sorted into three or four tiers. Tier 1 includes generic drugs and are the least expensive. Tier 2 drugs are “non-preferred” and may include both generic and brand name drugs. Tiers 3 and 4 are the highest cost drugs, including speciality medications, newer drugs, or drugs the same or similar to a less expensive alternative in Tier 1 or 2.

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