Section 33-64-1. Definitions

   As used in this chapter, the term:

   (1) "Business entity" means a corporation, association, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity.

   (2) "Commissioner" means the Commissioner of Insurance.

   (3) "Covered entity" means an employer, labor union, or other group of persons organized in this state that provides health coverage to covered individuals who are employed or reside in this state.

   (4) "Covered individual" means a member, participant, enrollee, contract holder, policy holder, or beneficiary of a covered entity who is provided health coverage by a covered entity.

   (5) "Health system" means a hospital or any other facility or entity owned, operated, or leased by a hospital and a long-term care home.

   (6) "Pharmacy benefits management" means the service provided to a health plan or covered entity, directly or through another entity, including the procurement of prescription drugs to be dispensed to patients, or the administration or management of prescription drug benefits, including, but not limited to, any of the following:

      (A) Mail service pharmacy;

      (B) Claims processing, retail network management, or payment of claims to pharmacies for dispensing prescription drugs;

      (C) Clinical or other formulary or preferred drug list development or management;

      (D) Negotiation or administration of rebates, discounts, payment differentials, or other incentives for the inclusion of particular prescription drugs in a particular category or to promote the purchase of particular prescription drugs;

      (E) Patient compliance, therapeutic intervention, or generic substitution programs; and

      (F) Disease management.

   (7) "Pharmacy benefits manager" means a person, business entity, or other entity that performs pharmacy benefits management. The term includes a person or entity acting for a pharmacy benefits manager in a contractual or employment relationship in the performance of pharmacy benefits management for a covered entity. The term does not include services provided by pharmacies operating under a hospital pharmacy license. The term also does not include health systems while providing pharmacy services for their patients, employees, or beneficiaries, for indigent care, or for the provision of drugs for outpatient procedures.

Code 1981, § 33-64-1, enacted by Ga. L. 2010, p. 757, § 1/SB 310.