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Drug formulary — generic and brand-name drugs

You will find that both generic and brand-name drugs are covered on the drug formulary. However, you will probably also notice that generic drugs usually cost less than brand-name drugs.

Generic Drugs: A prescription drug that is approved by the Food and Drug Administration (FDA) as having the same active ingredient(s) as the brand-name drug. Generally, generic drugs cost less than brand-name drugs.

Brand-Name Drugs: A prescription drug that is manufactured and sold by the pharmaceutical company that originally researched and developed the drug. Brand-name drugs have the same active-ingredient formula as the generic version of the drug. However, generic drugs are manufactured and sold by other drug manufacturers and are generally not available until after the patent on the brand-name drug