What is the term for the list of prescription drugs covered by a pharmacy benefit?

• A. Co-pay schedule
• B. Premium
• C. Drug formulary
• D. Deductible

Answer: (C)

Drug formulary is the list of prescription drugs covered by a plan’s pharmacy benefit. Insurance plans use a formulary to decide which medications are approved for coverage and how much the patient will pay, often organizing drugs into tiers that influence cost-sharing. This helps the plan control costs while guiding appropriate therapy.

The other terms relate to costs rather than the covered drug list: a co-pay schedule is the fixed amount paid at the pharmacy for each prescription, a premium is the periodic payment for the insurance policy, and a deductible is the amount you must pay out-of-pocket before benefits apply.