SF1738

This bill, S.F. No. 1738, proposes the establishment of a Minnesota Prescription Drug Purchasing Program under the Department of Human Services. The program aims to reduce prescription drug costs for Medical Assistance and MinnesotaCare enrollees by negotiating discounts and rebates on prescription medications.

Key Provisions of the Bill:

1. Establishment of the Program:

   • The commissioner of human services will oversee the program, ensuring prescription medications are provided at the lowest possible cost.

2. Duties of the Commissioner:

   • Secure cost-effective prescription drugs for eligible participants.
     
   • Promote public health by offering discounted medications.
     
   • Maintain a formulary listing the most cost-effective and beneficial drugs.
     
   • Administer prescription drug benefits for Medical Assistance & MinnesotaCare.
     
   • Process pharmacy claims and provide program prices to pharmacies.

3. Program Authority:

   • The commissioner, in consultation with the Formulary Committee, has the authority to:
     
     • Develop a preferred drug list,
       
     • Negotiate price discounts and rebates with drug manufacturers and wholesalers,
       
     • Manage a drug formulary for the program.
       
   • Contracts with third parties to assist in implementation will be allowed for plan years 2026–2028, but final decisions will be made by the commissioner.

4. Pharmacy Participation:

   • All pharmacies participating in Medical Assistance will be enrolled, along with other licensed pharmacies willing to comply with program requirements.

5. Federal Approval:

   • The commissioner will seek federal approval if necessary for implementation.

Objective:

The bill seeks to lower prescription drug costs for Minnesota’s public healthcare program enrollees by using bulk purchasing, price negotiation, and formulary management.