What is the primary purpose of a prescription drug formulary?

The primary purpose of a prescription drug formulary is to outline cost-sharing for each medication covered by a health plan. A formulary serves as a list of prescription drugs that are covered by a specific health insurance plan and typically categorizes these medications based on their coverage levels. This helps both healthcare providers and patients understand which drugs are available, the associated costs, and the tiers of coverage, which can vary in terms of copayments or coinsurance. Understanding the cost-sharing associated with each medication is crucial for patients when making decisions about their treatment options and managing their healthcare expenses effectively.

Other options, although related to the topic of medication management, do not correctly define the primary purpose of a formulary. For instance, while a formulary may include some information about the medications available within a health plan, it does not encompass all medications available in the marketplace nor does it provide the comprehensive information about side effects or commercial purchase options. Each of these aspects is relevant, but they do not capture the central function of a formulary concerning financial considerations in medication access.