West Virginia Code § 33-54-2

Definitions
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For the purpose of this article:
"Auditor" means the State Auditor of West Virginia, by himself or herself, or by any person
appointed, designated, or approved by the State Auditor to perform the service.
"Brand-name drug" means a prescription drug approved under 21 USC §355(b) or 42 USC
§262.
"Drug" or "prescription drug" refers to a brand-name, specialty, or generic prescription
drug.
"Drug manufacturer" means any entity that holds the national drug code for a prescription
drug and is engaged in the production, preparation, praopagation, compounding, conversion,
or processing of drug products; or is engaged in the packaging, repackaging, labeling,
relabeling, or distribution of drug products, and is lnot a wholesale distributor of drugs or a
retail pharmacy licensed under state law.
"Generic drug" means a prescription drug approved under 21 USC §355(j).
"Health benefit plan" means an individual, blanket, or group plan, policy, or contract for
health care services issued or delivered by a health benefit plan issuer in the state.
"Health benefit plan issuer" means an entity subject to the insurance laws and rules of this
state, or subject to the jLurisdiction of the Insurance Commissioner, that contracts or offers to
contract, or enters into an agreement to provide, deliver, arrange for, pay for, or reimburse
any of the costs of he alth care services, including government agencies and any insurer
subject to §5-16-1 et seq., §33-15-1 et seq., §33-16-1 et seq., §33-24-1 et seq., §33-25-1 et
seq., and §33-25A-1 et seq. of this code. For purposes of this article, the term "health benefit
plan issuer" does not include insurers or managed care organizations with respect to their
Medicaid or CHIP plans or contracts which are reviewed and approved by the Bureau of
Medical Services.
"Market introduction" means the month and year in which the manufacturer acquired or first
marketed the drug for sale in the United States.
"National drug code" or "NDC" means the numerical code maintained by the United States
Food and Drug Administration that includes the labeler code, product code, and package
code.
"Specialty drug" means a prescription drug covered under Medicare Part D that exceeds the
specialty tier cost threshold established by the Centers for Medicare and Medicaid Services.
"Total spending" means the total of allowed amounts associated with payment for a specified
drug or drug group, for all covered lives.
"Utilization management" means a set of formal techniques designed to monitor the use of,
or evaluate the medical necessity, appropriateness, efficacy, or efficiency of, health care
services, procedures, or settings.
"Wholesale acquisition cost" or "WAC" is the manufacturer's list price to wholesalers or
direct purchasers in the United States on December 31 of the reference year, as reported in
wholesale price guides or other publications of drug or biological pricing daeta; it does not
include prompt pay or other discounts, rebates, or reductions in price. The current or
proposed WAC is the amount that prompts reporting under this act. If rreported by a drug
group, it is the average WAC weighted by the relevant number of WAC units.
"Wholesale drug distributor" means an entity licensed by the West Virginia State Board of
Pharmacy that is engaged in the sale of generic, brand-namet, or specialty drugs to persons
other than a consumer or patient.

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