A drug formulary is best described as which of the following?

• A. A list of medications with no restrictions.
• B. A hospital policy manual.
• C. A list of preferred medications covered by a plan; may influence patient choices and costs.
• D. A denial list.

Answer: (C)

A formulary is a payer-directed list of medications that are covered and reimbursed, usually with preferred drugs placed on lower-cost tiers and subject to utilization controls. This makes the option describing it as a list of preferred medications covered by a plan that can influence patient choices and costs the best fit. It isn’t simply a hospital policy manual, which governs overall care processes, nor a denial list of drugs to avoid. Drugs outside the formulary often incur higher costs or require prior authorization, while formulary medicines are the ones the plan has negotiated to cover more clearly.