Medicare Glossary: Simple Definitions & Terms

A prescription drug sold under its trademarked name. Brand-name drugs are typically more expensive than generic alternatives and may be in a higher formulary tier, requiring a higher copay or coinsurance under Part D.

A level in a Part D formulary that determines how much you pay for a drug. Most plans have 4–5 tiers. Generic drugs are typically in lower tiers with lower copays; brand-name and specialty drugs are in higher tiers with higher copays or coinsurance.