Ind. Code ch. 27-1-24.7

in effect

Ind. Code § 27-1-24.7-1 Applicability

Sec. 1. This chapter applies to an agreement between a pharmacy benefit manager and a health plan regarding prescription drugs that is entered into, renewed, or renegotiated after December 31, 2025. This chapter does not apply to a health plan, with point of sale rebates, if at least eighty-five percent (85%) of the estimated rebates are deducted from the cost of prescription drugs dispensed at a pharmacy or via mail order before a covered individual's cost sharing requirement is determined. As added by P.L.216-2025, SEC.42.

Ind. Code § 27-1-24.7-2 "Covered individual"

Sec. 2. As used in this chapter, "covered individual" means an individual who is entitled to coverage under a health plan. As added by P.L.216-2025, SEC.42.

Ind. Code § 27-1-24.7-3 "Health plan"

Sec. 3. As used in this chapter, "health plan" means the following: (1) A state employee health plan (as described in IC 5-10-8-7). (2) A policy of accident and sickness insurance (as defined in IC 27-8-5-1). (3) An individual contract (as defined in IC 27-13-1-21) and a group contract (as defined in IC 27-13-1-16). (4) Any other plan or program that provides payment, reimbursement, or indemnification to a covered individual for the cost of prescription drugs. As added by P.L.216-2025, SEC.42.

Ind. Code § 27-1-24.7-4 "Policyholder"

Sec. 4. As used in this chapter, "policyholder" means an individual in whose name a health plan is held. As added by P.L.216-2025, SEC.42.

Ind. Code § 27-1-24.7-5 "Prescription drug"

Sec. 5. As used in this chapter, "prescription drug" means a controlled substance or a legend drug (as defined in IC 16-18-2-199). As added by P.L.216-2025, SEC.42.

Ind. Code § 27-1-24.7-6 "Rebate"

Sec. 6. (a) As used in this chapter, "rebate" means a discount or other price concession that is: (1) based on the use of a prescription drug; and (2) paid by a manufacturer or a third party to a pharmacy benefit manager (as defined in IC 27-1-24.5-12), pharmacy services administrative organization (as defined in IC 27-1-24.5-15), or pharmacy (as defined in IC 27-1-24.5-11) after a claim has been processed and paid at a pharmacy. (b) The term includes an incentive and a disbursement. As added by P.L.216-2025, SEC.42.

Ind. Code § 27-1-24.7-7 Contract requirement of notice to policyholder

Sec. 7. An agreement to which this chapter applies must contain a contractual provision that requires the pharmacy benefit manager to provide on an annual basis, not later than sixty (60) days after the end of each policy year, a notice to a policyholder that states the following: (1) An explanation of what a rebate is. (2) An explanation of how rebates accrue to a health plan from a manufacturer. (3) The aggregate amount of rebates for all prescription drugs dispensed or administered to covered individuals on the policyholder's health plan that accrued to the health plan during the previous policy year. This information may not include any information about an individual prescription drug, including the name, manufacturer, quantity, or dosage of a prescription drug. The notice required by this section may be provided by first class mail or electronic mail. As added by P.L.216-2025, SEC.42.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/27Fetched: 10/17/2026