Which of the following best describes a formulary?

A formulary is best described as a list of drugs covered by a patient’s insurance plan. This list is essential because it outlines which medications are approved for coverage under the insurance policy, often categorized by tiers that determine the patient's out-of-pocket costs. Formularies are developed by insurance companies or pharmacy benefit managers to promote the use of effective and cost-efficient medications while providing a framework for prescribing practices.

Having a formulary helps guide healthcare providers in choosing medications that are both clinically effective and financially accessible for patients. This ensures that patients receive coverage when filling prescriptions and aids in controlling overall healthcare costs.

Understanding the components of a formulary is important for pharmacy technicians, as they often help patients navigate their medication options based on what is covered under their insurance.