What is the purpose of a formulary?

• A. A tool to manage cost, optimize patient access, and improve outcomes
• B. A list of all available medications for every condition
• C. A requirement to prescribe the least expensive option
• D. A marketing strategy for drug manufacturers

Answer: (A)

Formularies are used to guide prescribing by balancing cost, patient access, and clinical outcomes. They are curated lists that payers or health systems use to promote medications with solid evidence of effectiveness and safety while prioritizing cost-effective options. This approach helps control overall costs, ensure necessary medicines are covered and accessible, and support better health results by aligning choices with proven value. The description that a formulary manages cost, improves access, and enhances outcomes best captures its purpose. It isn’t simply a complete catalog of every medication, not a rigid requirement to prescribe the cheapest option, and not a marketing strategy for drug manufacturers.