Sec. 12. (a) As used in this chapter, “pharmacy benefit manager” means an entity that, on behalf of a health plan, state agency, insurer, managed care organization, or other third party payor:

(1) contracts directly or indirectly with pharmacies to provide prescription drugs to individuals;

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Terms Used In Indiana Code 27-1-24.5-12

  • health plan: means the following:

    Indiana Code 27-1-24.5-5

  • insurer: means a company, firm, partnership, association, order, society or system making any kind or kinds of insurance and shall include associations operating as Lloyds, reciprocal or inter-insurers, or individual underwriters. See Indiana Code 27-1-2-3
  • person: includes individuals, corporations, associations, and partnerships; personal pronoun includes all genders; the singular includes the plural and the plural includes the singular. See Indiana Code 27-1-2-3
  • pharmacy: means the physical location:

    Indiana Code 27-1-24.5-11

  • pharmacy benefit manager: means an entity that, on behalf of a health plan, state agency, insurer, managed care organization, or other third party payor:

    Indiana Code 27-1-24.5-12

  • third party: means a person other than a:

    Indiana Code 27-1-24.5-17

(2) administers a prescription drug benefit;

(3) processes or pays pharmacy claims;

(4) creates or updates prescription drug formularies;

(5) makes or assists in making prior authorization determinations on prescription drugs;

(6) administers rebates on prescription drugs; or

(7) establishes a pharmacy network.

     (b) The term does not include the following:

(1) A person licensed under IC 16.

(2) A health provider who is:

(A) described in IC 25-0.5-1; and

(B) licensed or registered under IC 25.

(3) A consultant who only provides advice concerning the selection or performance of a pharmacy benefit manager.

As added by P.L.68-2020, SEC.1. Amended by P.L.32-2021, SEC.77.