Prescription Drug Categories – Academic HealthPlans

Generic Drugs: A drug that is identical or bioequivalent to a Brand-Named drug in dosage form, safety, strength, route of administration, quality, performance characteristics, intended use and is not protected by a patent. A comparable/equivalent drug that is prescribed and formulated to treat a same condition as the preferred brand drug and has a less expensive copay
Preferred Brand Drug: A formulary drug that is within a select subset of therapeutic classes, which make up the formulary drug list. A step up from Generic
Brand Name Drugs: Drugs for which the drug manufacturer’s trademark registration is still valid and where the trademarked or proprietary name of the drug still appears on the packaged label. Non-formulary (most expensive that has comparable brand name and generic)
Formulary: A list of medications designed to manage prescription costs without affecting the quality of care by identifying and encouraging use of the most clinically effective and cost-effective medications. The Formulary includes Generic, Brand, and Preferred Brand Drugs.