What is a formulary in the context of Medicare?

A formulary, particularly in the context of Medicare, specifically refers to a list of prescription drugs that are covered under Medicare Part D. This list is essential for Medicare beneficiaries as it outlines which medications are eligible for coverage, helping them understand what prescriptions will be supported by their insurance plan.

The formularies can vary between different Medicare Part D plans, meaning that not all plans will cover the same drugs or may have different tiers of coverage for certain medications. This is crucial for beneficiaries to check, as it impacts their out-of-pocket costs for medications and ensures they are choosing a plan that meets their healthcare needs.

Understanding the formulary is important for managing health costs effectively, as it directly influences both accessibility to medications and affordability for beneficiaries.