Tier (Drugs)

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Tier (Drugs)

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Drug tiers are how health insurance plans divide prescription drugs into different levels of cost.

Tier 1 thru Tier 5 is a common breakdown.

• Five levels of cost, with drugs in Tier 1 being the cheapest and drugs in Tier 5 the most expensive.

Your plan's Summary of Benefits and Coverage (SBC) document will list the number of tiers and associated costs.

♦ Insurance plans have recently begun listing pharmacies by tier also.

Their preferred pharmacy being Tier 1 and other network pharmacies Tier 2. Prescription costs being lower if Tier 1 pharmacies are used.

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Prescriptions

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Why do prescriptions cost so much?

• How are drug prices decided?