Purpose of the Bill

The purpose of this bill is to implement a structured framework for managing prescription drug benefits under Minnesota's human services programs, mainly focusing on selecting and contracting a state pharmacy benefit manager (PBM) to manage these services.

Main Provisions

• Selection of Pharmacy Benefit Manager: The bill mandates the Minnesota Commissioner of Human Services to select a single pharmacy benefit manager through a competitive procurement process. This selected PBM will be responsible for processing all pharmacy claims within the state's managed care delivery system.
• Master Contract Requirements: The commissioner must establish a master contract with the selected PBM, preventing it from requiring enrollees to obtain specialty drugs from pharmacies affiliated with the PBM.
• Transparency and Reporting: The PBM must disclose all payment sources, rebates, and financial relationships related to managed care plans. The PBM is required to submit quarterly reports detailing drug prices, rebates, and cost savings.
• Program Administration: The bill allows the commissioner to adopt or manage a preferred drug list, negotiate drug prices directly with manufacturers, and ensure the proper administration and transparency of drug benefits.

Significant Changes

• State Control over Pharmacy Services: The bill centralizes pharmacy benefit management by choosing a single PBM for all managed care systems, aiming to achieve cost savings and transparency.
• Enhanced Transparency and Accountability: By requiring detailed disclosures from the PBM, the bill enhances transparency about prescription drug costs and rebates, potentially affecting drug pricing and availability.
• Federal Compliance: The commissioner is tasked with acquiring necessary federal approvals to meet the regulations defined in the bill.

Relevant Terms

• Pharmacy Benefit Manager (PBM)
• Managed Care Plans
• Prescription Drug Rebates
• Drug Formulary
• Master Contract
• Transparency in Drug Pricing
• Federal Approval