Which statement is true about the formulary of a Medicare Part D plan?

The correct statement about the formulary of a Medicare Part D plan is that it can vary significantly among different Part D plans. Each Medicare Part D plan has the flexibility to create its own formulary, which is a list of covered medications. This means that the specific drugs covered, as well as any restrictions or requirements related to their use (such as prior authorization, quantity limits, or step therapy), can differ widely from one plan to another.

This variability allows plans to tailor their formularies based on various factors, including the needs of their beneficiaries and negotiations with drug manufacturers. Therefore, enrollees must carefully review the formulary of any plan they are considering to ensure that their necessary medications are included.

The other statements do not accurately reflect the characteristics of Medicare Part D formularies. For instance, it is not required to cover all FDA-approved medications, as this would be impractical and financially unfeasible for many plans. Additionally, formularies may change during the benefit year to reflect new drugs, changes in drug prices, or changes in treatment guidelines. Finally, cost factors play a crucial role in formulary decisions since plans often consider the cost-effectiveness of medications when determining their coverage.