Formulary management is classified as what type of service?

Formulary management is classified as an administrative service because it primarily involves the organization and oversight of the medication formulary, which is a list of covered drugs provided by a health insurance plan or pharmacy benefit manager (PBM). This management process encompasses evaluating the clinical efficacy, safety, and cost-effectiveness of medications, which ultimately aids in decision-making about which drugs to include on the formulary.

The administrative aspect comes into play through policy development, formulary updates, negotiation with pharmaceutical companies, and adherence to regulatory guidelines. This ensures that the formulary aligns with both clinical guidelines and the financial considerations of the health plan or PBM.

In contrast, clinical services focus more on patient care, therapy management, and direct interactions with healthcare professionals regarding treatment decisions. Retail services pertain to the dispensing of medications at retail pharmacies, and insurance services deal with insurance-related functions like claims processing. Thus, formulary management, given its emphasis on policy oversight and decision-making regarding drug inclusion and coverage, fits squarely within the realm of administrative services.