HF 3844

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; establishing a prescription drug bulk purchasing program;
requiring the commissioner to draft legislation and implementation plan;
proposing coding for new law in Minnesota Statutes, chapter 256.

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

Section 1.

new text begin [256.9552] PRESCRIPTION DRUG BULK PURCHASING
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of human services, subject to
subdivision 8, shall establish and administer a prescription drug bulk purchasing program
to consolidate prescription drug purchasing and reduce prescription drug prices for units
of state and local government, private sector employers, other participating entities, and
Minnesota residents.
new text end

new text begin Subd. 2. new text end

new text begin Program operation. new text end

new text begin (a) The commissioner shall negotiate prices for and
purchase prescription drugs on behalf of regional treatment centers, state educational
facilities, the state health plan, and other units of state government not otherwise excluded
under subdivision 7. The commissioner may also negotiate prices and purchase drugs for
units of local government, private employers, other governmental units, and private sector
entities, that choose to participate in the program.
new text end

new text begin (b) The commissioner shall make drugs purchased through the program available to
Minnesota residents who choose to participate in the program.
new text end

new text begin (c) In administering the program, the commissioner shall ensure:
new text end

new text begin (1) adequate geographic access to prescription drugs purchased through the
program; and
new text end

new text begin (2) that operation of the program does not lead to higher prescription drug prices for
entities and Minnesota citizens not participating in the program.
new text end

new text begin Subd. 3. new text end

new text begin Interagency cooperation. new text end

new text begin The commissioner shall consult with the
commissioner of administration in developing the program, and shall administer the
program in cooperation with the commissioner of administration.
new text end

new text begin Subd. 4. new text end

new text begin Negotiation of prices. new text end

new text begin The commissioner shall negotiate the prices of all
prescription drugs purchased under the program, unless the price of a prescription drug is
negotiated as part of a regional drug purchasing consortium under subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Regional drug purchasing consortium. new text end

new text begin The commissioner shall work
with other interested states, and may enter into agreements with one or more states, to
expand the bulk purchasing program into a regional bulk purchasing consortium. The
commissioner, to the extent possible, shall coordinate these efforts with participation
in the multistate preferred drug list and supplemental rebate program authorized under
section 256B.0625, subdivision 13g.
new text end

new text begin Subd. 6. new text end

new text begin Distribution of purchased drugs; payments to commissioner. new text end

new text begin (a) The
commissioner shall make prescription drugs purchased through the program available to
the entities described in subdivision 2, paragraph (a). The commissioner shall charge these
entities the negotiated price for the prescription drugs, plus an administrative fee set by the
commissioner at a level to recover the costs of administering the program. Participating
entities shall forward this amount to the commissioner in the form and manner specified
by the commissioner.
new text end

new text begin (b) The commissioner shall also make prescription drugs available to Minnesota
residents through Minnesota pharmacies that choose to participate in the program. The
pharmacy shall make these drugs available to local consumers, and shall charge these
individuals the negotiated price, the administrative fee referenced in paragraph (a), and a
dispensing fee set by the commissioner at a level to cover the costs to the pharmacy of
dispensing the prescription drugs. A participating pharmacy shall forward the negotiated
price payment and the administrative fee to the commissioner, in the form and manner
specified by the commissioner, but shall retain the dispensing fee. The commissioner may
limit the number of pharmacies participating in the program if this would significantly
increase the level of state savings or significantly reduce administrative costs, and still
maintain adequate geographic access.
new text end

new text begin (c) The commissioner may choose not to implement paragraph (b) if the
commissioner determines that this would significantly increase the level of state savings
or significantly reduce administrative costs. If the commissioner chooses not to implement
paragraph (b), the commissioner shall provide justification for this decision in the
implementation plan submitted to the legislature under subdivision 9. The commissioner
shall also ensure that Minnesota residents are able to purchase prescription drugs through
the entities described in subdivision 2, paragraph (a), and have adequate geographic access
to prescription drugs offered through the program.
new text end

new text begin Subd. 7. new text end

new text begin Other state programs. new text end

new text begin The commissioner shall not include medical
assistance, MinnesotaCare, general assistance medical care, or programs operated by the
commissioner of corrections in the bulk purchasing program. The commissioner may
recommend to the legislature, as part of the implementation plan due December 15, 2008,
that these programs be included, if the commissioner determines that inclusion would
result in significant savings to those programs.
new text end

new text begin Subd. 8. new text end

new text begin Contingent implementation. new text end

new text begin The commissioner is not required to
implement a prescription drug bulk purchasing program if the commissioner determines,
based upon the results of a financial analysis, that a program would not result in
significant savings to units of state government, other participating entities, and Minnesota
residents. If the commissioner makes this determination, the commissioner shall notify
the legislature of the decision to not implement the program and shall also submit to the
legislature the results of the financial analysis.
new text end

new text begin Subd. 9. new text end

new text begin Implementation plan. new text end

new text begin The commissioner shall present to the legislature,
by December 15, 2008, an implementation plan and draft legislation needed to implement
the prescription drug bulk purchasing program by July 1, 2009. The commissioner may
include in the implementation plan and draft legislation any recommendations for program
changes necessary to increase savings to units of state government, Minnesota residents,
and other participating entities, or to reduce administrative costs.
new text end