Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Regarding Medicare Part D formularies, insurers must:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A Medicare Part D formulary is a list of covered drugs organized into tiers. By law, a Part D plan's formulary must include at least two drugs in each treatment category, but it is not required to include all drugs in that category. This standard ensures that beneficiaries have a meaningful choice of medications while allowing plans to negotiate lower prices. Plans must file their formularies annually and can change them during the year subject to CMS notice requirements.
Why the other options are wrong
- A) Plans are not required to cover every drug on the market; they must include at least two drugs per treatment category.
- B) Generic drugs are not excluded; formularies typically favor generics because they are less expensive.
- D) Formularies include brand-name and generic drugs, not brand-name drugs only.
Memory hook
Two drugs per category is the Part D floor. Plans can leave drugs out, but never an entire treatment class empty.