Sec. 1. 22 MRSA c. 603, sub-c. 4 is enacted to read:

SUBCHAPTER 4

PRESCRIPTION DRUG PRACTICES

§2699.__Prescription drug practices

Pharmacy benefits managers shall and contracts for pharmacy benefits management must comply with the requirements of this section.

1.__Definitions.__As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Covered entity" means a nonprofit hospital or medical service organization, insurer, health coverage plan or health maintenance organization licensed pursuant to Title 24 or 24-A; a health program administered by the department or the State in the capacity of provider of health coverage; or an employer, labor union or other group of persons organized in the State that provides health coverage to covered individuals who are employed or reside in the State.__"Covered entity" does not include a health plan that provides coverage only for accidental injury, specified disease, hospital indemnity, Medicare supplement, disability income or other long-term care.

B.__"Covered individual" means a member, participant, enrollee, contract holder or policy holder or beneficiary of a covered entity who is provided health coverage by the covered entity.__"Covered individual" includes a dependent or other person provided health coverage through a policy, contract or plan for a covered individual.

C.__"ERISA" means the Employee Retirement Income Security Act of 1974, 29 United States Code, Sections 1001 to 1461 (1988).

D.__"Generic drug" means a chemically equivalent copy of a brand-name drug with an expired patent.

E.__"Labeler" means an entity or person that receives prescription drugs from a manufacturer or wholesaler and repackages those drugs for later retail sale and that has a labeler code from the federal Food and Drug Administration under 21 Code of Federal Regulations, 270.20 (1999).