Prescription Drug Plans

The typical prescription drug plan covers the cost of drugs that are required by law to be dispensed by a prescription (a physician's written order). Most prescription drug plans have either a two-tier structure-a lower copay for generic drugs and a higher copay for brand-name drugs (ie, $10/$20) or a three-tier structure-lowest copay for generic drugs, a little higher copay for brand-name formulary drugs (FDA-approved and chosen for their reported medical effectiveness and value) and the highest copay for non-formulary drugs (ie, $10/$20/$35). Prescription drug plans are often sold in conjunction with health plans but can be sold as a stand alone plan.

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