TMRW

Pharmacy

Generic vs brand drugs

Generic drugs are chemically identical to brand-name drugs but cost less, available after the brand-name patent expires. Most insurers heavily favor generics in their formulary tiers. Generics typically cost 80-85% less than brand equivalents.

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Related terms

Formulary

List of drugs covered by a plan, in tiers.

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Specialty drug

High-cost drug for complex conditions. Higher tier.

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More in Pharmacy

Formulary

List of drugs covered by a plan, in tiers.

Prior authorization

Insurer pre-approval for certain treatments.

Step therapy

Try lower-cost drugs before insurer covers expensive alternatives.

Specialty drug

High-cost drug for complex conditions. Higher tier.

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