For purposes of this chapter, the following terms shall mean:

(1)  “Director” shall mean the director of the department of business regulation.

(2)  “Eligible bidder” shall mean a retail pharmacy, community pharmacy, or pharmacy department registered pursuant to chapter 19.1 of Title 5, irrespective of corporate structure or number of locations at which it conducts business, located within the geographical service area of a carrier and willing to bid for participation in a restricted pharmacy network contract.

(3)  “Insured” shall mean any person who is entitled to have pharmacy services paid by an insurer pursuant to a policy, certificate, contract, or agreement of insurance or coverage.

(4)  “Insurer” shall mean an insurance carrier as defined in chapters 18, 19, 20, and 41 of this title.

(5)  “Nonrestricted pharmacy network” shall mean a network that permits any pharmacy to participate on substantially uniform terms and conditions established by an insurer or pharmacy benefits manager.

(6)  “Pharmacy benefits manager” shall mean any person or entity who or that is not licensed in Rhode Island as an insurer and that develops or manages pharmacy benefits, pharmacy network contracts, or the pharmacy benefit bid process.

(7)  “Restricted pharmacy network” shall mean an arrangement for the provision of pharmaceutical drug services to insureds that under the terms of an insurer’s policy, certificate, contract, or agreement of insurance or coverage requires an insured or creates a financial incentive for an insured to obtain prescription drug services from one or more participating pharmacies that have entered into a specific contractual relationship with the carrier.