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Code · Illinois · Chapter 215 — INSURANCE · Act 5

Sec. 512-7. Contractual provisions.

330 words·~2 min read·/il/chapter-215/act-5/512-7

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Sec. 512-7. Contractual provisions.
(a)Any agreement or contract entered into in this State between the administrator of a program and a pharmacy shall include a statement of the method and amount of reimbursement to the pharmacy for services rendered to persons enrolled in the program, the frequency of payment by the program administrator to the pharmacy for those services, and a method for the adjudication of complaints and the settlement of disputes between the contracting parties.
(b)(1) A program shall provide an annual period of at least 30 days during which any
pharmacy licensed under the Pharmacy Practice Act may elect to participate in the program under the program terms for at least one year.
(2)If compliance with the requirements of this subsection
(b)would impair any
provision of a contract between a program and any other person, and if the contract provision was in existence before January 1, 1990, then immediately after the expiration of those contract provisions the program shall comply with the requirements of this subsection (b).
(3)This subsection
(b)does not apply if:
(A)the program administrator is a licensed health maintenance organization that
owns or controls a pharmacy and that enters into an agreement or contract with that pharmacy in accordance with subsection (a); or
(B)the program administrator is a licensed health maintenance organization that is
owned or controlled by another entity that also owns or controls a pharmacy, and the administrator enters into an agreement or contract with that pharmacy in accordance with subsection (a).
(4)This subsection
(b)shall be inoperative after October 31, 1992.
(c)The program administrator shall cause to be issued an identification card to each person enrolled in the program. The identification card shall include:
(1)the name of the individual enrolled in the program; and
(2)an expiration date if required under the contractual arrangement or agreement
between a provider of pharmaceutical services and prescription drug products and the third party prescription program administrator.
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