1.1                          A bill for an act 
  1.2             relating to health; clarifying that individuals may 
  1.3             participate in pharmaceutical manufacturer's rebate 
  1.4             programs; amending Minnesota Statutes 2002, section 
  1.5             62J.23, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 62J.23, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [INTERIM RESTRICTIONS.] (a) From July 1, 1992, 
  1.10  until rules are adopted by the commissioner under this section, 
  1.11  the restrictions in the federal Medicare antikickback statutes 
  1.12  in section 1128B(b) of the Social Security Act, United States 
  1.13  Code, title 42, section 1320a-7b(b), and rules adopted under the 
  1.14  federal statutes, apply to all persons in the state, regardless 
  1.15  of whether the person participates in any state health care 
  1.16  program.  The commissioner shall approve a transition plan 
  1.17  submitted to the commissioner by January 1, 1993, by a person 
  1.18  who is in violation of this section that provides a reasonable 
  1.19  time for the person to modify prohibited practices or divest 
  1.20  financial interests in other persons in order to come into 
  1.21  compliance with this section.  Transition plans that identify 
  1.22  individuals are private data.  Transition plans that do not 
  1.23  identify individuals are nonpublic data. 
  1.24     (b) Nothing in paragraph (a) shall be construed to prohibit 
  1.25  an individual from receiving a discount or other reduction in 
  2.1   price or a limited-time free supply or samples of a prescription 
  2.2   drug, medical supply, or medical equipment offered by a 
  2.3   pharmaceutical manufacturer, medical supply or device 
  2.4   manufacturer, health plan company, or pharmacy benefit manager, 
  2.5   so long as: 
  2.6      (1) the discount or reduction in price is provided to the 
  2.7   individual in connection with the purchase of a prescription 
  2.8   drug, medical supply, or medical equipment prescribed for that 
  2.9   individual; 
  2.10     (2) it otherwise complies with the requirements of state 
  2.11  and federal law applicable to enrollees of state and federal 
  2.12  public health care programs; 
  2.13     (3) the discount or reduction in price does not exceed the 
  2.14  amount paid directly by the individual for the prescription 
  2.15  drug, medical supply, or medical equipment; and 
  2.16     (4) the limited-time free supply or samples are provided by 
  2.17  a physician or pharmacist, as provided by the federal 
  2.18  Prescription Drug Marketing Act. 
  2.19     (c) No benefit, reward, remuneration, or incentive for 
  2.20  continued product use may be provided to an individual or an 
  2.21  individual's family by a pharmaceutical manufacturer, medical 
  2.22  supply or device manufacturer, or pharmacy benefit manager, 
  2.23  except that this prohibition does not apply to: 
  2.24     (1) activities permitted under paragraph (b); 
  2.25     (2) a pharmaceutical manufacturer, medical supply or device 
  2.26  manufacturer, health plan company, or pharmacy benefit manager 
  2.27  providing to a patient, at a discount or reduced price or free 
  2.28  of charge, ancillary products necessary for treatment of the 
  2.29  medical condition for which the prescription drug, medical 
  2.30  supply, or medical equipment was prescribed or provided; and 
  2.31     (3) a pharmaceutical manufacturer, medical supply or device 
  2.32  manufacturer, health plan company, or pharmacy benefit manager 
  2.33  providing to a patient a trinket or memento of insignificant 
  2.34  value. 
  2.35     (d) Nothing in this subdivision shall be construed to 
  2.36  prohibit a health plan company from offering a tiered formulary 
  3.1   with different co-payment or cost-sharing amounts for different 
  3.2   drugs. 
  3.3      Sec. 2.  [EFFECTIVE DATE.] 
  3.4      Section 1 is effective July 1, 2004.