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A formulary exception is a type of coverage determination that is used when a medication is not included on a health plans formulary (list of drugs) or is subject to an NDC block.
Most plans require that your doctor submit a formulary exception on your behalf. The doctor will need to send paperwork to your health plan indicating the reason that you cant take the preferred medications and must have one that is not currently on the formulary.
If your plan approves your tiering exception request, your drug will be covered at cost-sharing that applies in the lower tier. Normally, an approved exception will be good until the end of the current calendar year. Be sure to ask your plan if they will cover the drug after the year ends.
For formulary exceptions, the prescribers supporting statement must indicate that the non-formulary drug is necessary for treating an enrollees condition because all covered Part D drugs on any tier would not be as effective or would have adverse effects, the number of doses under a dose restriction has been or is
What Are Prior Authorization and the Formulary Exception Process? The term prior authorization may also refer to a commonly used managed care strategy called the formulary exception process, which allows exceptions to a plans formulary (see A M C P s Concept Series paper, Form u l a ry Management).
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An exception procedure can be used by prescribers and patients to request coverage for drugs that are not included on a plans drug formulary. Through this administrative process, a plan can agree to cover medically necessary nonformulary drugs on a case-by-case basis.
A formulary exception is a type of coverage determination that is used when a medication is not included on a health plans formulary (list of drugs) or is subject to an NDC block.
A prior authorization (PA) request is needed when a formulary restriction requires a review by Quartz to determine if specific prescribing criteria are met before approval of coverage is granted.

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