In Medicare Part D, what is a formulary and what do drug tiers determine?

• A. A list of covered drugs; tiers determine copays and coinsurance amounts; higher tiers cost more.
• B. A schedule of pharmacy hours and preferred pharmacies only.
• C. A limit on the total number of prescriptions allowed per year.
• D. A requirement that all drugs must be prescribed by a specialist.

Answer: (A)