What is a formulary?

A formulary is a comprehensive list of prescription medications that are covered by a specific health insurance plan. This list is crucial for both healthcare providers and patients as it helps to determine which medications are eligible for coverage under an insurance policy, influencing the options a provider can prescribe and ensuring that patients have access to necessary treatments without incurring significant out-of-pocket expenses.

The presence of a formulary encourages the use of preferred medications, which may be more cost-effective and therapeutic alternatives. This selection process often involves an evaluation of the safety, efficacy, and cost-effectiveness of the drugs.

In contrast, the other choices refer to different healthcare-related resources. A list of medical providers pertains to the network of doctors or specialists available for patient care, while a list of covered treatments for illness addresses the therapies approved by the insurance plan for specific medical conditions. A list of hospital services relates to the various treatments and procedures a hospital may offer, but these do not specifically focus on medications or prescriptions like a formulary does.