A formulary is a list of drugs (both generic and brand name) that are selected by your health plan as the drugs they prefer to treat certain health conditions. ... The selections are based on each drug's therapeutic class, which is a group of medications known to treat a particular health condition.

What is a formulary in healthcare?

A list of prescription drugs covered by a prescription drug plan or another insurance plan offering prescription drug benefits. Also called a drug list.

How do Medicare plans establish formularies?

Plans establish their own formularies that are then reviewed by CMS. ... Plans will also be required to use a Pharmacy and Therapeutic (P&T) committee to develop and review their formularies. P&T Committee decisions about what medications are placed on the formulary will be considered binding by CMS.