The use of drug formularies in managed care.

Abstract

As a way of controlling the rising costs of health care, most managed care companies have implemented drug formularies. A drug formulary is generally defined as a listing of medications the health plan will cover for reimbursement. Some medications may need authorization from the health plan before they will be dispensed. This paper argues that drug formularies contain cost while causing no physical harm to the patient. The method of research used is descriptive. The paper will examine the issue from the side of the physician, the health plan and the patient. The research includes personal interviews, anecdotal records and reviews of available literature. The findings will show that patients still have access to a wide range of therapeutic medications and do not suffer physical harm as a result of a drug formulary.