New Jersey CVS Board of Pharmacy (BOP) Practice Exam 2025 – Your Comprehensive All-In-One Guide to Success!

Medicaid typically prefers to cover generic medications due to their lower cost compared to brand-name drugs. The use of generics helps manage overall healthcare costs while ensuring that patients still receive effective treatment options. Generic medications are identical in dosage form, strength, route of administration, quality, and performance characteristics to their brand-name counterparts, ensuring similar therapeutic benefits. This focus on generics aligns with Medicaid's goals of providing accessible and cost-effective healthcare.

Brand-name medications can be much more expensive, and while they may be covered by Medicaid in certain situations, there is generally a strong incentive to use generics first whenever they are available. Over-the-counter (OTC) medications are usually not covered by Medicaid unless there are specific medical guidelines that warrant their reimbursement, making this option less favorable. Therefore, the correct choice reflects Medicaid’s commitment to affordability and accessibility through the promotion of generic drug use.