GLOSSARY · PRESCRIPTIONS
Formulary, the list of medicines a clinic prescribes.
A formulary is a list of medications that a health plan covers or that a clinic's providers prescribe, along with the doses, forms, and prices that apply.
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What it means
Health plans and PBMs use formularies to decide which drugs they cover and what the patient pays, often in tiers. In a telehealth clinic the word also means the clinic's own list: the drugs its protocols support, the strengths and dose forms its pharmacies stock, and the price of each.
A clinic's formulary is set by its clinical leadership. It should reflect evidence, safety, and what the pharmacy network can reliably supply.
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Why it matters to a brand operator
The formulary is the brand's product catalog. It decides what the brand can sell, what each program costs to fill, and how much margin is left. Adding a drug means adding the clinical protocol, the pharmacy supply, and the pricing behind it.
It is also where incentives show. When a platform earns a margin on each fill, formularies tend to drift toward higher-margin products and more frequent fills. A brand should see the cost behind every line of its formulary.
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How Tessic Health handles it
Medication on Tessic Health is billed at wholesale with 0% markup, so every price on a client's formulary starts at the pharmacy's actual cost, and which drug a patient takes stays the prescriber's decision.
See the published termsRELATED TERMS
Words that come up next.
PBM
A PBM (pharmacy benefit manager) is a company that manages prescription drug benefits for health plans and employers, deciding which drugs are covered, what pharmacies are paid, and what patients owe at the counter.
503A compounding
503A compounding is a type of pharmacy compounding that lets a state-licensed pharmacy make a custom medication for one specific patient, based on that patient's prescription.
Titration protocol
A titration protocol is a dosing plan that starts a patient on a low dose and adjusts it in set steps, based on how the patient responds and tolerates side effects.