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Generic Substitution
substitution of drug products that contain the same active ingredient or ingredients and are chemically identical in strength, concentration, dosage form, and route of administration to the drug product prescribed.
Policy
a broad general statement that describes the goals and purposes of a course of actions
Therapeutic Alternative
Drug products with different chemical structures but of the same pharmacologic or therapeutic class and usually have similar therapeutic effects and adverse reaction profiles when administered to patients in therapeutically equivalent doses.
Procedure
The specific stepwise actions to be taken
Therapeutic Interchange
Authorized exchange of therapeutic alternatives in accordance with previously established and approved written guidelines or protocols within a formulary system.
Therapeutic Substitution
The act of dispensing a therapeutic alternative for the drug product prescribed with prior authorization of the prescriber.
The P&T committee
Responsible for administering the formulary system
Prior Authorization Criteria
Require the submission and approval through the telephone, an online portal/website, or written coverage request for the health plan to cover the drug
Quantity Limits
Establishes limits on the amount of medication a patient may receive during a designated period or in a single refill, such as a 30-, 60-, or 90-day supply
Formulary Coverage Restrictions
Determine the medications that are included within a formulary
Narrow Pharmacy Networks
Encourage or require patients to use designated pharmacies or dispensing channels
Drug Utilization Review (DUR)
Ongoing review of the prescribing, dispensing, and taking of medications.
Step Therapy
More expensive drugs are not authorized unless patients do not respond to less expensive therapeutic alternatives.
Disease management:
Identification and caring for segments of the enrolled population with specific chronic conditions (eg, asthma, diabetes)
Outcomes measurement:
A subset of the quality measures that deal with the patient’s functional health status, morbidity, and mortality levels
Utilization management:
The evaluation of the medical necessity, appropriateness, and efficiency of the use of healthcare services, procedures, and facilities
Referral authorization:
The process by which the enrollee’s PCP must authorize a referral to see a specialist or obtain a specific diagnostic test.
Demand management:
Tools used to moderate a patients’ insistence for (especially expensive) healthcare services.
Case management:
A subset of utilization management that includes the utilization review of high-cost patients
Health
a state of complete physical, mental, and social wellbeing
Care
efforts made to maintain or restore physical, mental, or emotional wellbeing, by trained and licensed professionals
System
interdependent parts that are interconnected by input, throughput, and output to create one unified and designed process
UHC
all people have access to full range of quality health services they need, when and where they need them, and without financial hardship; covers full extent of essential health services from health promotions to prevention, treatment, rehab, palliative care
First fail protocols
require demonstration that a generic drug, lower treatment, or lower cost drug fails to work for the patient before plan covers more expensive med or treatment
Mail order criteria
requires a higher copay if the patient obtains the drug from a retail pharmacy versus the PBM’s mail order pharmacy
Formulary system
ongoing process through which a healthcare organization establishes policies regarding the use of drugs
Open formulary
list of recommended drugs with no requirements concerning use and drug benefit coverage
Closed/restricted formulary
only a limited number of agents are available with certain parameters related to use and drug benefit coverage