Drug Tiers

Drug tiers are a classification system used by insurance plans to categorize prescription medications based on their cost and coverage level. Typically, medications are assigned to different tiers, with lower-tier drugs having lower copayments or coinsurance amounts and higher-tier drugs requiring higher out-of-pocket costs. The tier designation often reflects the drug’s efficacy, availability as a generic or brand-name medication, and whether it’s considered a preferred or non-preferred drug within the plan’s formulary.