What term is used for a formulary that restricts drug choices to a pre-determined list?

What term is used for a formulary that restricts drug choices to a pre-determined list?

• A. Open formulary
• B. Closed formulary
• C. General formulary
• D. Universal formulary

Answer: (B)

Restricting drug choices to a pre-determined list corresponds to a closed formulary. In this setup, the payer or institution approves a specific set of medications, and coverage is typically limited to those drugs. Prescribers can select any drug on the list without additional steps, while drugs outside the list may require prior authorization, may be denied, or may incur higher patient cost. This approach helps control costs, supports evidence-based prescribing, and simplifies formulary management, but it can limit flexibility for patients needing non-formulary therapies. An open formulary, by contrast, covers a broad range of medications, often with varying copays and potential prior authorization; general or universal formularies are not standard terms used to describe a restricted list.

Restricting drug choices to a pre-determined list corresponds to a closed formulary. In this setup, the payer or institution approves a specific set of medications, and coverage is typically limited to those drugs. Prescribers can select any drug on the list without additional steps, while drugs outside the list may require prior authorization, may be denied, or may incur higher patient cost. This approach helps control costs, supports evidence-based prescribing, and simplifies formulary management, but it can limit flexibility for patients needing non-formulary therapies. An open formulary, by contrast, covers a broad range of medications, often with varying copays and potential prior authorization; general or universal formularies are not standard terms used to describe a restricted list.