Tiered Formulary

This refers to a drug plan formulary that divides drugs into groups in Medicare Part D. These groups are also known as tiers and have a different cost sharing level. For example, you can expect a generic version of a drug to have a lower co-pay than the brand name version of the same drug. Cost sharing details vary depending on the plan.

The plan’s tiered formulary clearly showed that the generic drug was subject to a much lower co-pay than the branded drug, so Kevin chose the generic drug.