- the Official U.S. Government Site for Medicare


Term Definition

Drugs on a formulary are often organized into different drug "tiers" . Your cost depends on which drug tier your drug is in. For example, a plan may form tiers this way:

  • Tier 1 - Generic drugs.
  • Tier 2 - Preferred brand-name drugs.
  • Tier 3- Non-preferred brand name drugs.

Contact the plan to learn more about its specific tier structure.