What is the best definition of formulary?

The best definition of a formulary is that it refers to the medications covered within a benefit plan based on Centers for Medicare & Medicaid Services (CMS) guidelines. A formulary acts as a list of approved prescription drugs that a health insurance plan provides coverage for, outlining what medications are available to beneficiaries and under what circumstances.

This defined coverage is crucial for ensuring that patients can access necessary medications while also helping to manage costs for both the insurance provider and the patient. The formulary is designed to promote the use of clinically effective and safe medications while considering the overall expenses associated with treating patients.

Other options, such as the notion of including all medications available in pharmacies, do not accurately reflect the selective nature of a formulary. Similarly, restricting the definition to emergency medications or medications prescribed only during hospital visits fails to capture the comprehensive scope of a formulary, which encompasses a broader range of prescribed medications intended for ongoing treatment and management of health conditions based on established clinical guidelines.