What defines a closed formulary?

A closed formulary is characterized by its restrictive nature regarding the drugs available to members. Specifically, it is a list of medications that members may access only if they meet certain criteria, such as obtaining prior authorization. This means that not all drugs are automatically available; rather, access is contingent upon fulfilling specific requirements set by the plan. This is typical in a closed formulary where only a select number of medications are covered, often to control costs and manage the therapeutic options available to patients.

In this context, the choice indicating a comprehensive list of all medications available to all members incorrectly describes an open formulary, where broader access is allowed without restrictive criteria. Similarly, a choice that states a list of drugs that are not covered at all would more accurately reflect exclusion rather than a formulary's structure. Lastly, a limited list of drugs with no exceptions might suggest an overly stringent approach, which is not the intent of a closed formulary, as it still allows for some drugs to be accessed under specific circumstances rather than entirely without exceptions.