House File No. 1075 is a bill proposed in Minnesota that aims to ensure that rebates and other forms of financial compensation received by pharmacy benefit managers (PBMs) and health carriers from drug manufacturers are used to directly benefit patients covered under their plans. Below are the main provisions of the bill:

1. Direct Benefits to Patients: PBMs and health carriers are required to pass all compensation received from drug manufacturers (related to prescription drugs) to the patients at the point of sale. This is meant to reduce the out-of-pocket costs for patients when they buy their prescribed medication.

2. Exceptions: If a patient's cost-sharing obligation (like copayments or coinsurance) for a drug is already less than the potential out-of-pocket cost after applying the received compensation, the PBM or health carrier is not required to pass on the compensation. Instead, they can use this retained compensation to reduce future premium or other costs for their covered persons.

3. State Employee Group Insurance Program: Contracts under this program that involve PBMs must ensure that these PBMs follow the rules set out in this bill.

4. Terms Definitions: The bill defines various terms such as "compensation" and "cost-sharing obligation" to clarify what types of benefits are included and what exactly constitutes a patient’s cost-sharing part.

5. Annual Compliance Reports: Starting from March 2026, PBMs and health carriers must annually report to the commissioner how they have complied with the provisions of this bill.

In summary, Minnesota's HF No. 1075 mandates that financial benefits from drug manufacturers must be used to directly lessen the financial burden on patients regarding their prescription medications, and demands transparency and compliance through annual reports.