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HF 1711

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/08/2023 10:39am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/10/2023

Current Version - as introduced

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1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9
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A bill for an act
relating to health; requiring pharmacy benefit managers and health carriers to use
prescription drug rebates and other compensation to benefit covered persons;
requiring a report; proposing coding for new law in Minnesota Statutes, chapter
62W.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [62W.15] RESPONSIBILITY TO USE COMPENSATION FOR BENEFIT
OF COVERED PERSONS.
new text end

new text begin Subdivision 1. new text end

new text begin Compensation used to reduce point-of-sale costs. new text end

new text begin (a) Except as provided
in paragraph (b), a pharmacy benefit manager or health carrier must remit all compensation
received from a drug manufacturer related to its prescription drug benefit directly to the
covered person associated with a particular prescription drug, at the point of sale, to reduce
the covered person's out-of-pocket cost for that prescription drug.
new text end

new text begin (b) A pharmacy benefit manager or health carrier is not required to remit all compensation
as required by paragraph (a), if the covered person's cost-sharing obligation for a particular
drug is less than what the person's out-of-pocket cost for that drug would be after application
of paragraph (a). All compensation retained by the pharmacy benefit manager or health
carrier under this paragraph must be applied by that entity in its plan design to offset future
premiums or costs for covered persons.
new text end

new text begin (c) State employee group insurance program contracts with pharmacy benefit managers,
including but not limited to contracts under section 43A.231, must require pharmacy benefit
manager compliance with this section.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions apply.
new text end

new text begin (b) "Compensation" means any direct or indirect financial benefit, including but not
limited to rebates, discounts, credits, fees, grants, chargebacks, or other payments or benefits
of any kind.
new text end

new text begin (c) "Cost-sharing obligation" means a covered person's co-payment or coinsurance for
a particular prescription drug.
new text end

new text begin Subd. 3. new text end

new text begin Report on compliance. new text end

new text begin Beginning March 1, 2024, and each March 1 thereafter,
a pharmacy benefit manager or health carrier shall file with the commissioner a report, in
the form and manner specified by the commissioner, demonstrating how the pharmacy
benefit manager or health carrier has complied with this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end