Section 3761-703 - Rebate agreement(a) Requirement.--PACE, PACENET and designated pharmaceutical programs shall not reimburse for any covered prescription drug without a rebate agreement between the department and the manufacturer of the covered prescription drug.(b) Exception.--Subsection (a) shall not apply if the availability of the drug is essential to the health of eligible claimants as determined by the department.(c) Agreements.--Manufacturers of prescription drugs reimbursed under PACE, PACENET and designated pharmaceutical programs must enter into a rebate agreement with the department under this chapter to obtain such reimbursement. Nothing in this chapter shall be deemed to affect or impair any agreement made under the former provisions of Chapter 6 of the act of August 14, 1991 (P.L. 342, No. 36) , known as the Lottery Fund Preservation Act.(d) Notice.--The department shall notify enrolled providers of PACE, PACENET and designated pharmaceutical programs on an annual basis and, as appropriate, of all manufacturers who have entered into a rebate agreement.(e) Drug formulary.-- Except as provided in section 512, there shall be no drug formulary, prior or retroactive approval system or any similar restriction imposed on the coverage of outpatient drugs made by manufacturers who have agreements in effect with the Commonwealth to pay rebates for drugs utilized in PACE and PACENET, provided that such outpatient drugs were approved for marketing by the Food and Drug Administration. This subsection shall not apply to any act taken by the department pursuant to its therapeutic drug utilization review program undersection 505 . 1971, Aug. 26, P.L. 351, No. 91, § 703, added 1996, Nov. 21, P.L. 741, No. 134, § 2, imd. effective.