For purposes of this subchapter:
(1) “Entity” means a pharmacy benefits manager or any person or organization that represents these companies, groups, or organizations.
(2) “Pharmacy benefits manager” or “PBM” means an entity that contracts with pharmacists or pharmacies on behalf of a person to do any of the following:
a. Process claims for prescription drugs or medical supplies or provide retail network management for pharmacies or pharmacists.
b. Pay pharmacies or pharmacists for prescription drugs or medical supplies.
c. Negotiate rebates with manufacturers for drugs paid for or procured as described in this chapter.
(3) “Plan sponsor” means as defined under § 4405 of this title.