What is a Tiered Formulary

Under Extended Health Care and Prescription Drugs a "Tiered Formulary" refers to a drug plan that has multiple tiers of coverage, for example:

80% Mandatory Generic

100% Provincial Formulary

OR

70% Voluntary Generic

90% Preferred Pharmacy

The tiers refer to the different levels of coverage, coinsurance, deductibles, and drug definitions that may apply to a plan member.  Tiered Coverage is often used to provide an incentive for plan members to use a preferred pharmacy solution or ask their physician to try and prescribe within a certain formulary such as provincial coverage or a provider offering.