A drug formulary is a list of prescription drugs that is used by practitioners in order to find the drug that offers the best overall value, according to Arise Health Plan. The drug formulary includes both brand name and generic brands.
The list is maintained by a committee of physicians, pharmacists and nurse practitioners, states Arise Health Plan. The committee chooses drugs for the formulary based on safety and effectiveness. Input is also given by local physicians who are not members of the committee. There are four tiers for drugs on a formulary, which determine the portion of the drug cost for which the patient is responsible.