(1)__For the basic component of the program, the total cost to an enrollee for the purchase of any covered drug or medication may not exceed the sum of $2 plus 20% of the price allowed for that drug or medication under program rules.

(2)__For the supplemental component of the program, the total cost to an enrollee for the purchase of any covered drug or medication may not exceed:

(a)__For a brand name drug or medication, the cost to the program for that drug or medication minus the $2 paid by the program; and

(b)__For a generic drug or medication, the sum of $2 plus 20% of the price allowed for that drug or medication under program rules.

(3)__For the catastrophic component of the program, the commissioner shall establish annual limits on the costs incurred by enrollees for drugs and medications covered under the program on or prior to May 31, 2001.__After the limit is reached, the program must pay 80% of the cost of each drug and medication covered by the supplemental component of the program on May 31, 2001 minus $2.__Any remaining amount is paid by the enrollee.__The limits must be set by the commissioner by rule as necessary to operate the program within the program budget.

H.__Payment must be denied for drugs from manufacturers that do not enter into a rebate agreement with the department.

(1)__Each agreement must provide that the manufacturer make rebate payments for both the basic and supplemental components of the program to the department according to the following schedule.

(a)__From October 1, 1992 to October 1, 1998, the rebate percentage is equal to the percentage recommended by the federal Center for Medicare and Medicaid Services of the manufacturer's wholesale price for the total number of dosage units of each form and strength of a prescription drug that the department reports as reimbursed to providers of prescription drugs, provided payments are not due