Question

What is the primary purpose of a formulary in a healthcare plan?

A) To include the most expensive drugs
B) To prioritize brand-name drugs over generics
C) To exclude low-cost medications
D) To list low-cost, effective drugs preferred by the health care plan

Answer 1

The primary purpose of a formulary in a healthcare plan is to provide a list of cost-effective and efficient medications for both healthcare providers and patients, which often includes generic drugs due to their lower cost.

Step-by-step explanation:

The primary purpose of a formulary in a healthcare plan is to list low-cost, effective drugs preferred by the health care plan. A formulary is developed to manage costs and ensure that patients receive the most efficient and safe medications. Rather than including the most expensive drugs or prioritizing brand-name over generics, formularies typically include drugs that provide the highest level of care at the best value, often listing generics that are significantly cheaper than brand-name drugs due to lower cost in manufacturing and absence of drug development expenses.

Pharmacists and healthcare providers use the formulary to determine the best medications for patients, considering both efficacy and cost-containment. It is designed to provide a range of medications that meet the diverse medical needs of a population while controlling costs for both the insurer and the patients.