GUIDE TO MEDICATIONS, INSURANCE, & PRESCRIPTION TERMS
💊 Medication Types and Labeling
Generic Drug
-A drug that has the same active ingredients as a brand-name drug, but usually costs less.
Brand-Name Drug
-A drug sold under a specific company’s name, often more expensive than the generic version.
Over-the-Counter (OTC) Drug
-Medicine you can buy without a doctor’s prescription.
Prescription Drug
-Medicine that a doctor must approve for you to use.
🧾 Pharmacy and Prescription Terms
Prescription Label
-The sticker on your medication bottle that shows your name, the drug name, and how to take it.
Refill
-Getting more of the same medicine without a new prescription.
Prior Authorization
-When your doctor must get approval from your insurance company before they pay for a drug.
🏥 Insurance Terms
Deductible
-The amount you pay out of your own pocket before your insurance starts to help.
Copayment (Copay)
-A set amount you pay for a prescription, like $10 or $25.
Coinsurance
-The part of the cost you share with your insurance, like paying 20% of the drug price.
Out-of-Pocket Maximum
-The most money you’ll pay in a year for medical costs. After that, insurance pays 100%.
Premium
-The amount you pay each month to have health insurance.
Formulary
-A list of medications your insurance will help pay for.
Tier (in drug plan)
-Insurance groups drugs into levels. Lower tiers cost less than higher tiers.
In-Network Pharmacy
-A pharmacy that works with your insurance plan to give you the best prices.
Specialty Drug
-A medicine that costs a lot or needs special handling, often for serious or chronic conditions.
📦 Medication Access & Safety
Mail-Order Pharmacy
-A service that sends your medicine to your home, often used for regular or long-term prescriptions.
Drug Interaction
-When one medicine affects how another one works, this can be helpful or harmful.
Black Box Warning
-A strong safety warning from the FDA about serious or life-threatening risks.