Section effective until January 1, 2021.

(A) As used in this article:

(1) "Claim" means a request from a pharmacy or pharmacist to be reimbursed for the cost of filling or refilling a prescription for a drug or for providing a medical supply or device.

(2) "Insurer" means an entity that provides health insurance coverage in this State as defined in Section 38-71-670(7) and Section 38-71-840(16).

(3) "Pharmacist" has the same meaning given that term in Section 40-43-30(65).

(4) "Pharmacy" has the same meaning given that term in Section 40-43-30(67).

(5) "Pharmacy benefit manager" means an entity that contracts with pharmacists or pharmacies on behalf of an insurer, third party administrator, or the South Carolina Public Employee Benefit Authority to:

(a) process claims for prescription drugs or medical supplies or provide retail network management for pharmacies or pharmacists;

(b) pay pharmacies or pharmacists for prescription drugs or medical supplies; or

(c) negotiate rebates with manufacturers for drugs paid for or procured as described in this section.

(6) "List" means the list of drugs for which a pharmacy benefit manager has established a maximum allowable cost.

(7) "Maximum allowable cost" means the maximum amount that a pharmacy benefit manager will reimburse a pharmacist or pharmacy for the cost of a generic drug.

(8) "Network providers" means those pharmacists and pharmacies who provide covered health care services or supplies to an insured or a member pursuant to a contract with a network plan to act as a participating provider.

(B) This article does not apply to the South Carolina Department of Health and Human Services in the performance of its duties in administering Medicaid under Titles XIX and XXI of the Social Security Act.

HISTORY: 2016 Act No. 163 (S.849), Section 1, eff January 1, 2016.

Repeal

2019 Act No. 48, Section 4, provides that Article 20 of Chapter 71, Title 38 is repealed, effective January 1, 2021.

Editor's Note

2016 Act No. 163, Section 2, provides as follows:

"SECTION 2. This article applies to contracts between pharmacies and pharmacy benefit managers that are entered into, renewed, or extended on or after the effective date of this act."

2019 Act No. 48, Section 4, provides as follows:

"SECTION 4. Article 20 of Chapter 71, Title 38 is repealed."