Why aren’t all drugs covered by insurance?

Cindy George for GoodRx

Why aren’t all drugs covered by insurance?

A formulary is the list of prescription medications covered by a health insurance plan . The list typically has brand-name and generic options. In addition to medications, a formulary can also include other products and technologies, such as diabetes supplies and digital therapeutics .

Health plans develop formularies to provide enrollees access to treatments for a full range of conditions that will improve health outcomes. But when selecting these medications, insurance companies also factor in the cost of covering a particular drug.

Research by GoodRx , a platform for medication savings, found that formularies are shrinking across insurance plan types. A smaller share of available drugs are covered