To have lower costs, many plans place drugs into different “tiers” on their lists, which cost different amounts. Each plan can divide its tiers in different ways. Below is an example of how a plan might divide its tiers. A drug in a lower tier will cost you less than a drug in a higher tier.
Example:
- Tier 1–Generic drugs. Tier 1 drugs will cost you the least amount.
- Tier 2–Preferred brand-name drugs. Tier 2 drugs will cost you more than Tier 1 drugs.
- Tier 3–Non-preferred brand-name drugs. Tier 3 drugs will cost you more than Tier 1 and Tier 2 drugs.
