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Formulary, Drug

A drug formulary is a list of pharmaceutical products; formularies are often created for the purposes of drug purchasing, dispensing, or reimbursement. Many different entities involved in the delivery of, and payment for, health care services use formularies, including health plans, institutions, and government bodies. A common reason for creating a formulary is to specify which drugs may be purchased, or which drugs’ purchase will be subsidized, by the entity. The use of drug formularies is largely a reaction to increasing prescription drug costs and the multiplicity of drugs produced by different manufacturers that are available to treat common conditions. For instance, the Veterans Administration (VA) of the United States has used a National Formulary since 1997 that indicates which drugs the VA will routinely ...

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