September 3, 2015 | Video

Cost Tiers

Cost tiers, also known as tiers, are a system that Medicare private drug plans use to price prescription drugs. Generic drugs are generally on the first, least expensive tier (Tier 1), followed by brand-name drugs (Tier 2), and then specialty drugs (Tiers 3 and above), with each subsequent tier requiring higher out-of-pocket costs.

Glossary Terms

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