Tiers

In Medicare Part D, drug formularies categorize brand name and generic drugs into cost-sharing tiers and each plan can divide its tiers in different ways. An example of a plan’s tiers is as follows:

• Tier 1 - lowest copayment with mostly generic drugs

• Tier 2 - medium copayment with preferred, brand-name drugs

• Tier 3 - high copayment with non-preferred, brand-name drugs

• Speciality Tier - highest copayment with high cost drugs