CHAPTER 1. STATE AGGREGATE PRESCRIPTION DRUG PURCHASING PROGRAM

IC 16-47
    ARTICLE 47. AGGREGATE PURCHASING OFPRESCRIPTION DRUGS

IC 16-47-1
    Chapter 1. State Aggregate Prescription Drug Purchasing Program

IC 16-47-1-1
"Department" defined
    Sec. 1. As used in this chapter, "department" refers to the statepersonnel department.
As added by P.L.50-2004, SEC.5.

IC 16-47-1-2
"Health benefit plan" defined
    Sec. 2. As used in this chapter, "health benefit plan" refers to thefollowing:
        (1) An accident and sickness insurance policy purchased ormaintained 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 isentered into or renewed under IC 5-10-8-7(c).
        (4) A plan through which a state educational institutionarranges for coverage of the cost of health care services (asdefined in IC 27-13-1-18) provided to employees of the stateeducational institution.
As added by P.L.50-2004, SEC.5. Amended by P.L.2-2007, SEC.197.

IC 16-47-1-3
"Program" defined
    Sec. 3. As used in this chapter, "program" refers to the aggregateprescription 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 budgetagency, shall establish, implement, and maintain an aggregateprescription drug purchasing program through which terms arenegotiated 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 thatincludes a prescription drug benefit.
    (b) The budget agency may contract with a pharmacy benefitmanager or other person to conduct the negotiations of the programestablished under subsection (a).
    (c) The terms and conditions of the program are subject to theapproval 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 department shall participate in the program for ahealth benefit plan:
        (1) described in section 2(1), 2(2), or 2(3) of this chapter; and
        (2) that provides coverage for prescription drugs.
    (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 prescriptiondrugs.
        (2) A local unit (as defined in IC 5-10-8-1).
        (3) The Indiana comprehensive health insurance associationestablished under IC 27-8-10.
        (4) 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.
    (c) The state Medicaid program may not participate in theprogram under this chapter.
As added by P.L.50-2004, SEC.5. Amended by P.L.173-2007, SEC.3.

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 underthis 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 prescriptiondrugs 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 pharmaceuticalmanufacturer is voluntary.
    (b) The state may not:
        (1) require prior authorization for a prescription drug in thestate Medicaid program under IC 12-15; or
        (2) otherwise penalize a pharmaceutical manufacturer;
because the pharmaceutical manufacturer is not participating in theprogram.
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 anddiscounts, provided to the state or the state's contractor under this

chapter is confidential and is exempt from disclosure underIC 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 anddiscounts with a pharmaceutical manufacturer to participate in theprogram.
As added by P.L.50-2004, SEC.5.