Kentucky Revised Statutes Title XXV. Business and Financial Institutions § 304.17A-161.Definitions for KRS 304.17A-161, 304.17A-162, 304.17A-163, and 304.17A-165

(1) “Contracted pharmacy” or “pharmacy” means a pharmacy located in Kentucky participating in the network of a pharmacy benefit manager through a direct contract or through a contract with a pharmacy services administration organization or group purchasing organization;

(2) “Drug product reimbursement” means the amount paid by a pharmacy benefit manager to a contracted pharmacy for the cost of the drug dispensed to a patient and does not include a dispensing or professional fee;

(3) “Maximum allowable cost” means the maximum amount that a pharmacy benefit manager will reimburse a pharmacy for the cost of a generic drug and does not include a dispensing or professional fee; and

(4) “Pharmacy benefit manager” means an entity that, on behalf of a health benefit plan, state agency, insurer, managed care organization providing services under KRS Chapter 205, or other third-party payor: