What is a formulary?

A formulary is specifically defined as a list of medications that are covered under a particular health insurance plan. This list is essential for both healthcare providers and patients, as it outlines which prescription drugs are available to policyholders at a determined level of cost-sharing. Drug formularies are typically tiered, indicating different levels of coverage or co-payments for medications, which helps ensure that patients have access to necessary medications while managing healthcare costs for the insurance provider.

Considering the context of health insurance, options that refer to client lists, claims records, or premium calculators do not accurately define a formulary. A client list would pertain to the individuals enrolled in a health plan, a claims record would detail the reimbursements processed for services rendered, and a guide for calculating premiums would relate to the financial aspects of the health insurance product rather than the specific medications covered.