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

   1. (1) contracts directly or indirectly with pharmacies to provide prescription drugs to individuals;
   2. (2) administers a prescription drug benefit;
   3. (3) processes or pays pharmacy claims;
   4. (4) creates or updates prescription drug formularies;
   5. (5) makes or assists in making prior authorization determinations on prescription drugs;
   6. (6) administers rebates on prescription drugs; or
   7. (7) establishes a pharmacy network.

2. (b) The term does not include the following:

   1. (1) A person licensed under IC 16 .

   2. (2) A health provider who is:

      1. (A) described in IC 25-0.5-1 ; and
      2. (B) licensed or registered under IC 25 .
   3. (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.