What is the difference between a formulary, generic, brand-name and non-formulary drug?
A formulary is a list of preferred generic and/or brand-name drugs that your health plan will cover. Formulary drugs have been reviewed for clinical effectiveness, safety, and cost-effectiveness. A generic drug is produced and sold under the chemical name and approved by the Food and Drug Administration (FDA) to be therapeutically equivalent to the brand-name drug. A brand-name drug is produced and sold under the original manufacturer’s brand name. A non-formulary drug is medication that has a preferred alternative listed in the drug formulary.
