Insurance companies and prescription drugs

The prescription manufacturers set their own prices and they often build a large profit margin to regain cost spent on researching, manufacturing and advertising. The health insurer analyzes each drug on the market, by looking at their clinical benefits per dollar. The insurer divides all the drugs under categories or tiers based on the cost and use. The tiers can also be categories as generics which offer the same benefits as the name brand but cost less. The second is, preferred drugs which cost little more than the previous one. The tier three medicines are the most expensive because they are cheaper alternatives than the ones found on tier one and two. Tier four has special medicines which could be high cost medication because they are often used to treat complex diseases. If a person purchases medicine from any one of the tiers on a regular basis, he/she will get the medicines by home delivery and the cost is less and convenient.