A formulary is best described as what?

A formulary is best described as a list of preferred drugs by a health plan or pharmacy benefit manager (PBM). This list is specifically curated to guide healthcare providers and patients toward medications that are covered under the health plan or PBM's cost management strategy. The formulary typically includes various tiers, indicating which drugs are preferred based on effectiveness, safety, and cost-effectiveness, assisting in managing drug costs while ensuring access to necessary medications.

The inclusion of only preferred drugs helps health plans control prescription costs by favoring medications that offer better value, while still allowing for flexibility in patient care. It plays an essential role in the healthcare system by promoting the use of specific drugs, which can help streamline pharmaceutical spending and improve patient health outcomes through effective medication management.