Formulary Usage

The use of a formulary is diverse. You can do the following:

• You can discourage the use of marginally effective medications and treatments.
• You can assure the selected medications are proven to be safe, effective, and affordable.
• You can reduce the overall health care coverage costs.

Every organization, such as hospitals, insurance companies, pharmacy benefit management companies, government agencies, and self-insured employers, develops its own unique formulary. There are no established universal standards to develop a formulary. Therefore, the list of drugs, methods to create such lists, and the design of each formulary can be different.