Insurance carriers use 3-, 4-, or 5-tier pricing systems where each tier represents a different cost level. Generally, Tier 1 (generic drugs) is the least expensive, while Tier 4 or 5 (specialty or brand-name drugs) is the most expensive in terms of your out-of-pocket costs.
For example, you might pay a $10 copay for a Tier 1 generic but $75 for a Tier 3 brand-name drug. Always check what tier your medication is in when comparing plans—the same drug can be in different tiers across different plans.