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Hcs/405 Week 2 Research Paper

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Words 317
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Week 2 Discussion Thread
TOPIC
Explain why pharmaceutical representatives leave samples of expensive medications with physicians.
What is a formulary, and how do insurance companies save money by using a formulary for prescription drug coverage?
Total Points: 50 points
Grading Rubric:
Required Discussion Elements Point Value
Explained why pharmaceutical representatives leave samples of expensive medications with physicians. 10
Explained a formulary. 10
Explained how insurance companies save money by using a formulary for prescription drug coverage. 10
Respond to 2 classmates. 10
No spelling or grammar errors. Included research sources. 10
Total possible points 50

1. Explained why pharmaceutical representatives leave samples of expensive medications with physicians. …show more content…
2. Explained a formulary.
A formulary is a list of medicines and their formulas for compounding and testing resources. Formulary has a list of approved medication usually the limited to generic drugs (Tier I) or brand name drugs (Tier II) and is assigned to a healthcare setting or insurance policy. The formulary was designed for the safer usage of medication and to manage cost.

3.Explained how insurance companies save money by using a formulary for prescription drug coverage.
The insurance company uses the Tier system whereby they categorize the drugs by pricing. This gives the patient a choice to choose from the generic or if they prefer the branded ones they can pay more for it. The insurance company usually has a negotiated price for approved drugs. Negotiated price benefits the patient at the same time there is a copay attached to Tier II drugs which are branded and has generic drugs

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