Sec. 5. (a) This subsection does not apply to prescription drugs that are dispensed through an onsite clinic. The following shall participate in the program:
(1) The department, for a health benefit plan:
(A) described in section 2(1) or 2(2) of this chapter; and
(B) that provides coverage for prescription drugs.
(2) After June 30, 2011, a state educational institution, for a health benefit plan:
(A) described in section 2(3) of this chapter; and
(B) that provides coverage for prescription drugs;
unless the budget agency determines that the state educational institution's participation in the program would not result in an overall financial benefit to the state educational institution. The budget agency may delay compliance with this subdivision to a date after July 1, 2011, that is determined by the budget agency to allow for the orderly transition from another program.
(b) The following may participate in the program:
(1) A state agency other than the department that:
(A) purchases prescription drugs; or
(B) arranges for the payment of the cost of prescription drugs.
(2) A local unit (as defined in IC 5-10-8-1).
(3) A nonprofit association of cities and towns.
(4) The Indiana comprehensive health insurance association established under IC 27-8-10.
(c) The state Medicaid program may not participate in the program under this chapter.