CHAPTER 21. PRESCRIPTION DRUG DISCOUNT CARDS
IC 24-5-21
Chapter 21. Prescription Drug Discount Cards
IC 24-5-21-1
Applicability
Sec. 1. This chapter does not apply to the following:
(1) Eye or vision care services, glasses, or contact lenses
provided by an optometrist or ophthalmologist.
(2) A card, device, or other purchasing mechanism that is not
insurance but that is administered in conjunction with a health
or medical benefit by an insurance company, a nonprofit health
service plan corporation, or a health maintenance organization.
(3) A benefit administered by or under contract with the state of
Indiana.
(4) A customer discount or membership card issued by a store
or buying club for use at that store or buying club.
As added by P.L.230-2001, SEC.1.
IC 24-5-21-2
"Person" defined
Sec. 2. As used in this chapter, "person" has the meaning set forth
in IC 24-5-0.5-2.
As added by P.L.230-2001, SEC.1.
IC 24-5-21-3
Prohibitions against sale or distribution of card
Sec. 3. A person may not sell, market, promote, advertise, or
distribute a card, device, or other purchasing mechanism that
purports to offer discounts or access to discounts from a pharmacy
for prescription drug or device purchases in the following situations:
(1) The card, device, or other purchasing mechanism does not
expressly state in bold and prominent type, which is
prominently placed, that the discounts are not insurance.
(2) The discounts are not specifically authorized by an
individual and separate contract with each pharmacy listed with
the card, device, or other purchasing mechanism.
(3) The discounts or access to discounts offered, or the range of
discounts or access to the range of discounts offered are
deceptive or misleading.
As added by P.L.230-2001, SEC.1.
IC 24-5-21-4
Indiana resident designated as agent for service of process
Sec. 4. A person who is not exempt under section 1 of this chapter
and who sells, markets, promotes, advertises, or distributes a card,
device, or other purchasing mechanism that purports to offer
discounts or access to discounts from a pharmacy for prescription
drug or device purchases shall designate a resident in Indiana as an
agent for service of process and register the agent with the secretary
of state.
As added by P.L.230-2001, SEC.1.
IC 24-5-21-5
Card voidable for noncompliance
Sec. 5. A contract entered into to purchase a card, device, or other
purchasing mechanism that purports to offer discounts or access to
discounts from a pharmacy for prescription drug or device purchases
that does not comply with this chapter is voidable by the purchaser.
As added by P.L.230-2001, SEC.1.
IC 24-5-21-6
Legal action for violations
Sec. 6. (a) The attorney general, a prosecuting attorney, or an
individual may maintain an action to enjoin any act that is in
violation of this chapter and for the recovery of damages.
(b) An action brought under this section may be brought in the
county where:
(1) the plaintiff resides or conducts business;
(2) the defendant resides or conducts business; or
(3) the card, device, or other purchasing mechanism that
purports to offer discounts or access to discounts from a
pharmacy for prescription drug or device purchases was sold,
marketed, promoted, advertised, or distributed.
(c) If the court finds that the defendant violated any provision of
this chapter, the court shall enjoin the defendant from continuing the
acts that are in violation of this chapter.
(d) A plaintiff who prevails in an action under this chapter may
recover the following:
(1) A sum equal to one hundred dollars ($100) per card, device,
or other purchasing mechanism that is sold or distributed in
Indiana by the defendant or ten thousand dollars ($10,000),
whichever is greater.
(2) Three (3) times the amount of actual damages, if any.
(3) Reasonable attorney's fees.
(4) Court costs.
(5) Any other relief that the court considers proper.
As added by P.L.230-2001, SEC.1.
IC 24-5-21-7
Provisions not exclusive
Sec. 7. (a) The provisions of this chapter are not exclusive and do
not relieve a person from compliance with other applicable
provisions of law.
(b) The penalties in this chapter are cumulative and in addition to
any other applicable penalties.
(c) A person that violates this chapter is subject to the penalties
set forth in IC 24-5-0.5.
(d) All actions brought under this chapter must be brought within
two (2) years after the date on which the violation of this chapter
occurred.
As added by P.L.230-2001, SEC.1.