Formulary

Understanding Drug Formulary in Health Insurance | Aura Insure Guide

Understanding Your Health Insurance Drug Formulary" Caption: "Drug formularies organize medications into tiers, affecting your out-of-pocket costs for prescriptions.

Understanding Drug Formularies in Health Insurance: What is a Formulary?

A formulary is a list of prescription drugs covered by your health insurance plan. It's essentially a catalog of medications that your insurance company has agreed to pay for, either in full or in part. Understanding your plan's formulary is crucial for managing your healthcare costs.

Key Points:

• Formularies typically categorize drugs into tiers, with different cost-sharing for each tier.

• Generic drugs are usually in lower tiers and cost less than brand-name drugs.

• Formularies can change, so it's important to review them annually.

Example: If your doctor prescribes a medication, check your plan's formulary to see if it's covered. If it's not, ask your doctor about covered alternatives to potentially save money.

At Aura Insure, we’re here to help you understand all aspects of your health plan, including how out-of-pocket maximums impact your coverage. Contact us today to learn more about finding the right plan for your needs and budget.