2013 Indiana Code TITLE 16. HEALTH ARTICLE 47. AGGREGATE PURCHASING OF PRESCRIPTION DRUGS CHAPTER 1. STATE AGGREGATE PRESCRIPTION DRUG PURCHASING PROGRAM
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IC 16-47
ARTICLE 47. AGGREGATE PURCHASING OF
PRESCRIPTION DRUGS
IC 16-47-1
Chapter 1. State Aggregate Prescription Drug Purchasing
Program
IC 16-47-1-0.1
Application of certain amendments to chapter
Sec. 0.1. The following amendments to this chapter apply as
follows:
(1) The addition of section 5(a)(1) of this chapter by
P.L.50-2004 applies to a health benefit plan described in section
2(1), 2(2), and 2(3) of this chapter, as added by P.L.50-2004,
established, entered into, delivered, amended, or renewed after
December 31, 2004.
(2) The addition of section 5(a)(2) of this chapter by
P.L.50-2004 applies to a health benefit plan described in section
2(4) of this chapter, as added by P.L.50-2004, on the date that
the health benefit plan is established, entered into, delivered,
amended, or renewed after December 31, 2004.
As added by P.L.220-2011, SEC.325.
IC 16-47-1-1
"Department"
Sec. 1. As used in this chapter, "department" refers to the state
personnel department.
As added by P.L.50-2004, SEC.5.
IC 16-47-1-2
"Health benefit plan"
Sec. 2. As used in this chapter, "health benefit plan" refers to the
following:
(1) An accident and sickness insurance policy purchased or
maintained under IC 5-10-8-7(a)(3).
(2) A self-insurance program established under IC 5-10-8-7(b)
to provide group health coverage.
(3) A contract with a prepaid health care delivery plan that is
entered into or renewed under IC 5-10-8-7(c).
(4) A plan through which a state educational institution
arranges for coverage of the cost of health care services (as
defined in IC 27-13-1-18) provided to employees of the state
educational institution.
As added by P.L.50-2004, SEC.5. Amended by P.L.2-2007, SEC.197.
IC 16-47-1-3
"Program"
Sec. 3. As used in this chapter, "program" refers to the aggregate
prescription drug purchasing program established under this chapter.
As added by P.L.50-2004, SEC.5.
IC 16-47-1-4
Establishing, implementing, and maintaining program
Sec. 4. (a) The department, with the approval of the budget
agency, shall establish, implement, and maintain an aggregate
prescription drug purchasing program through which terms are
negotiated related to the purchase of prescription drugs by:
(1) an entity described in section 5(a) or 5(b) of this chapter; or
(2) an individual who is covered under a health benefit plan that
includes a prescription drug benefit.
(b) The budget agency may contract with a pharmacy benefit
manager or other person to conduct the negotiations of the program
established under subsection (a).
(c) The terms and conditions of the program are subject to the
approval of the budget agency.
As added by P.L.50-2004, SEC.5.
IC 16-47-1-5
Participation in program
Sec. 5. (a) The following shall participate in the program:
(1) The department, for a health benefit plan:
(A) described in section 2(1), 2(2), or 2(3) of this chapter;
and
(B) that provides coverage for prescription drugs.
(2) After June 30, 2011, a state educational institution, for a
health benefit plan:
(A) described in section 2(4) of this chapter; and
(B) that provides coverage for prescription drugs;
unless the budget agency determines that the state educational
institution's participation in the program would not result in an
overall financial benefit to the state educational institution. The
budget agency may delay compliance with this subdivision to
a date after July 1, 2011, that is determined by the budget
agency to allow for the orderly transition from another program.
(b) The following may participate in the program:
(1) A state agency other than the department that:
(A) purchases prescription drugs; or
(B) arranges for the payment of the cost of prescription
drugs.
(2) A local unit (as defined in IC 5-10-8-1).
(3) The Indiana comprehensive health insurance association
established under IC 27-8-10.
(c) The state Medicaid program may not participate in the
program under this chapter.
As added by P.L.50-2004, SEC.5. Amended by P.L.173-2007, SEC.3;
P.L.229-2011, SEC.166.
IC 16-47-1-6
Approval of request for proposals by budget agency
Sec. 6. A request for proposal and the award of a contract under
this chapter is subject to the approval of the budget agency.
As added by P.L.50-2004, SEC.5.
IC 16-47-1-7
Prohibition on importing drugs in violation of federal law
Sec. 7. The program may not include the purchase of prescription
drugs imported into the United States in violation of federal law.
As added by P.L.50-2004, SEC.5.
IC 16-47-1-8
Voluntary participation by pharmaceutical manufacturers;
prohibition on penalizing manufacturers
Sec. 8. (a) Participation in the program by a pharmaceutical
manufacturer is voluntary.
(b) The state may not:
(1) require prior authorization for a prescription drug in the
state Medicaid program under IC 12-15; or
(2) otherwise penalize a pharmaceutical manufacturer;
because the pharmaceutical manufacturer is not participating in the
program.
As added by P.L.50-2004, SEC.5.
IC 16-47-1-9
Confidentiality of information
Sec. 9. Any information, including prescription drug prices and
discounts, provided to the state or the state's contractor under this
chapter is confidential and is exempt from disclosure under
IC 5-14-3.
As added by P.L.50-2004, SEC.5.
IC 16-47-1-10
Negotiations by drug stores to participate in program
Sec. 10. A drug store may negotiate prescription drug prices and
discounts with a pharmaceutical manufacturer to participate in the
program.
As added by P.L.50-2004, SEC.5.
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