What is a three-tier copay?
A three-tier copay structure is a type of pharmacy benefit design offered by insurers. It is an effective cost-containment strategy that promotes cost-sharing and provides incentive for utilization of preferred products. The following is a typical three-tier copay structure: $5 for preferred generic products (tier 1), $15 for preferred-brand products (tier 2), and $30 for non-preferred products (tier 3).
