The committee shall be advisory in nature and shall assist the department with the following functions pursuant to applicable state and federal law:

    (a) Advise and make recommendations to the department for the inclusion of prescription drugs on the preferred drug list based on available information regarding the known potential impact on patient care, the known potential fiscal impact on related medicaid covered services, and sound clinical evidence found in labeling, drug compendia, and peer-reviewed literature pertaining to use of the drug in the relevant population.

    (b) Advise the department on issues affecting prescription drug coverage for the department's various health care programs.

    (c) Recommend to the department guidelines for prescription drug coverage under the department's various health care programs.

    (d) Develop a process to collect and review information about new prescription drugs. The department shall post this process and the necessary forms on the department's website.

    (e) Recommend to the department strategies to improve the initiative.