HF 1589

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; establishing a prescription drug
bulk purchasing program; 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, 2005, 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, 2005, an
implementation plan and draft legislation needed to implement
the prescription drug bulk purchasing program by July 1, 2006.
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