What is typically included in a formulary of a health insurance plan?

A formulary is a list used by health insurance plans that outlines which medications are covered under the plan, along with their associated costs. This list helps both patients and healthcare providers understand which drugs are available without additional out-of-pocket expenses and which might come with higher copayments or coinsurance.

Including a variety of medications, the formulary typically categorizes them into tiers based on their cost and the plan's coverage level, providing clarity on patient responsibilities. This organized approach allows for efficient management of drug benefits and assists in containing overall healthcare costs.

In contrast, the other options do not accurately reflect what a formulary encompasses. For instance, a formulary does not include all medications available in the pharmaceutical market since it selectively lists covered drugs based on efficacy, safety, and cost-effectiveness. Additionally, while some medications may require preapproval for coverage, that requirement does not define the formulary itself but rather the process surrounding certain drugs. Lastly, a formulary does not focus exclusively on over-the-counter drugs; rather, it typically includes prescription medications that are part of the benefit structure of the insurance plan.