Certified Application Counselor Practice Test

Which tier typically has the lowest costs for medications?

1. Second tier with brand-name drugs

2. First tier with generic drugs

3. Third tier with specialty drugs

4. No tier corresponds to cost

The correct answer is: First tier with generic drugs

The first tier typically has the lowest costs for medications because it predominantly includes generic drugs. Generic medications are bioequivalent to their brand-name counterparts and are generally available at significantly lower prices. This cost-effective nature is due to several factors, such as the lack of proprietary rights after the patent expiration and reduced production and marketing costs. By having a lower copayment or coinsurance associated with them, the first tier encourages patients to choose these generic options as a way to manage their medication expenses effectively. This tier structure is common in many health plans, aiming to promote the use of affordable medications while maintaining adherence to treatment regimens.