This section defines key terms used in the chapter, including the board, program, department, manufacturer, participating retail pharmacy, prescription drug buying group, and wholesaler.
As used in this chapter, the following words and phrases shall have the following meanings: (1) BOARD. The Alabama Prescription Cost Initiative Board created by Section 36-35-4 to administer the program. (2) COOPERATIVE. A business entity functioning on a cooperative basis that distributes its income to a particular member in proportion with that member’s use of the cooperative on a patronage basis. (3) DEPARTMENT. Any department, agency, office, or program administered by the state for which the board or director has negotiated, or entered an agreement with a pharmacy benefits manager or cooperative to negotiate, a prescription drug rebate, or discount. (4) EXECUTIVE DIRECTOR. An executive director employed by the board to administer this chapter and the program. (5) GOVERNMENTAL ENTITY. Any department of the State of Alabama; any county government or municipal government; any school system, college, or university; or any public authority. (6) MANUFACTURER. A manufacturer of prescription drugs as defined in 42 U.S.C. Section 1396r-S(k)(5), including a subsidiary or affiliate of a manufacturer. (7) PARTICIPATING RETAIL PHARMACY. A retail pharmacy or other business licensed to dispense prescription drugs in this state that participates in state employee health insurance plans. (8) PRESCRIPTION DRUG BUYING GROUP. Entities formed to enable retail pharmacies to aggregate their buying power in negotiating discounts and/or rebates on the purchase of pharmaceutical products from the manufacturers of pharmaceutical products, including, but not limited to, cooperatives and pharmacy benefits managers. The term pharmacy benefits manager includes any entity that procures prescription drugs at a negotiated rate for dispensing within this state to a department or governmental entity. (9) PROGRAM. The Alabama Prescription Cost Initiative Program established by this chapter relating to supplemental drug rebates, and negotiated pricing of drugs. (10) WHOLESALER. A business licensed pursuant to state law to distribute prescription drugs in this state.