Formulary is defined as what?

• A. A random list of possible drugs
• B. Evidence-based list of covered medications
• C. A list of all existing drugs regardless of coverage
• D. A patient preference catalog

Answer: (B)

Formulary is the list of medications that a health plan has agreed to cover for its members, chosen based on evidence of safety, efficacy, and cost-effectiveness. This makes it a curated, evidence-based set of options rather than a random assortment or every drug on the market. It also isn’t based on patient preferences alone; drugs outside the formulary may require special authorization or exceptions. By focusing on proven therapeutic value and negotiated prices, the formulary helps ensure access to effective treatments while controlling costs, often using tiered copays and prior authorization to guide prescribing choices.