What is a drug formulary?

A drug formulary is defined as a list of medications that a third-party insurance company has deemed necessary and will cover for its beneficiaries. This list usually includes medications that are cost-effective and clinically effective, aimed at promoting the use of preferred medications while managing overall healthcare costs.

The formulary often prioritizes or restricts certain drugs based on various criteria, including effectiveness, safety, and cost. Consequently, patients and healthcare providers may face limitations on which medications can be prescribed or reimbursed, emphasizing the importance of understanding the specifics of the formulary when making pharmaceutical choices.

In contrast, the other options refer to different concepts within pharmacy practice. A list of controlled substances pertains to the categorization of drugs based on their potential for abuse and dependence. A comprehensive list of all available medications in a pharmacy would represent the inventory or stock of that particular pharmacy, while a list of off-label drug uses refers to the usage of medications outside the indications approved by the FDA. Each of these elements plays a role in pharmacy practice, yet they do not accurately define the specific scope and purpose of a drug formulary as it is understood in relation to insurance coverage and patient care.