HealthCare.gov defines a formulary as, a list of prescription drugs covered by a prescription drug plan offering prescription drug benefits. Typically, a “prior authorization” for coverage is needed when a medication is not listed on the formulary or requires step therapy. Management of the formulary is often maintained by a pharmacy benefit manager (PBM), such as First Script. Meaning, when a medication is not on a formulary, First Script would start the prior authorization process to get approval for payment of the medication. Step therapy is the concept of a patient trying a first-line recommended medication before taking a “step up” to a medication that costs more and/or has less supporting evidence of effectiveness. Typically, a formulary (aka, drug list) shows where a medication is regarding “step” in therapy and what conditions need to be met before the medication is approved for payment. The medications on a drug list and the conditions of step therapy can be determined in several ways. However, The Official Disability Guidelines (ODG) from the Work Loss Data Institute and the Practice Guidelines from the American College of Occupational and Environmental Medicine (ACOEM) are tailored to workers’ compensation. In the case of workers’ comp, many factors may go into step therapy requirements and formulary placement, including work-relatedness, cost of the medication, place in therapy, treatment guidelines, availability of alternative agents, and evidence-based medicine (EBM) resources.
More stories
Mitchell
News Release
Mitchell Introduces Enhanced Solution for Vehicle Owner Communication and Engagement
The company’s latest technology, Mitchell ServiceLink powered by UpdatePromise, integrates repair status updates into Mitchell Connect and all
Mitchell
News Release
Mitchell Expands Its Intelligent Open Platform and Support for AI-Enabled Vehicle Inspections Through Collaboration With PAVE
SAN DIEGO, Calif.—Mitchell, an Enlyte company and leading technology and information provider for the
Workers' Comp
Article
Modernizing Networks in the P&C Industry
Payers are looking for network management partners with innovative strategies to control rising medical costs, provide adequate coverage, quality o
Workers' Comp
Article
Ask The Pharmacist: Proper Medication Storage and Expiration Dates Explained
How does storing medications ensure their safety and effectiveness until the expiration date? Proper storage
Workers' Comp
White Paper
Unlock the Full Potential of State-Certified Managed Care Plans
Workers’ Comp managed care plans can be complex to navigate.
Workers' Comp
Article
Seven Technology Features in Utilization Review Software to Control Medical Costs
Rising medical costs are a consistent and significant challenge for workers' compensation payers.