What is commonly seen in a formulary regarding drug tiers?

In a formulary, drug tiers are structured to categorize medications based on their cost and effectiveness. Less expensive drugs are typically placed in lower tiers, which are associated with lower co-pays for patients. This tiered system encourages the use of more cost-effective and often generic alternatives, making medications more affordable for patients while managing costs for insurance providers. The lower co-pays for these drugs incentivize prescribing and dispensing them, thereby promoting cost savings for both patients and payers. This tiered approach is a fundamental aspect of how formularies function to manage healthcare expenses effectively.