Medicare Part D Formulary Tiers

There are five “cost-sharing tiers” for drugs on SCAN’s Formulary (list of covered drugs). Every drug on the Formulary is in one of five cost-sharing tiers. In general, the higher the cost-sharing tier, the higher your cost for the drug.

Cost-Sharing Tier 1: Preferred Generic

This tier includes generic drugs (the lowest tier).

Cost-Sharing Tier 2: Generic

This tier includes generic drugs.

Cost-Sharing Tier 3: Preferred Brand

This tier includes brand drugs and some generic drugs.

Cost-Sharing Tier 4: Non-Preferred Drug

This tier includes brand drugs and some generic drugs.

Cost-Sharing Tier 5: Specialty Tier

This tier includes specialty drugs (the highest tier).

To find out which cost-sharing tier your drug is in, look it up in the SCAN Formulary.

The Formulary is updated monthly. The most up-to-date list of covered drugs is available on our website. If you have any questions, please call SCAN Member Services.