Usually an established amount is charged per drug. A percentage of the drug cost may be charged in some cases. Drug Patent Limits the legal rights to the manufacture and distribution of the drugs to the holder of the patent, usually the firm that researched and developed the drug. Formulary A list of drugs recommended or accepted for payment. Formularies are used by health insurers to control drug costs.
Policies vary regarding notice to health plan members affected by changes in the formulary.
Policies vary regarding exceptions for special needs. Generic Drug Drugs sold under a general simplified chemical name rather than a brand name. Available generic drugs are no longer under patent restrictions. A generic drug contains exactly the same active ingredient as its corresponding brand-name counterpart. Usually drugs are produced generically if there is a large market for the drug.