Definition: A list of medications that are covered by your health insurance plan. Formularies can include both generic and brand-name drugs. They are often organized into "tiers" that indicate how much your copay will be for each drug. Medications in a preferred tier will cost you less out-of-pocket than medications in other tiers.
If a drug is not on your plan's formulary, your insurance company may not cover it at all. If that is the case, you will have to pay the full cost of the medication out-of-pocket.
