Question 18Drug tiers are used to determine the cost of a drug;typically, thethe tier, thethe…

➤ Why are some drugs placed in higher tiers?
Insurers and pharmacy benefit managers set tiers based on negotiated prices, clinical value, and availability of generic options. Brand-name and specialty drugs with higher acquisition costs or limited competition often go into higher tiers. Placement reflects cost-management strategies like formulary design, prior authorization, and step therapy to control spending.