1.1 	A bill for an act
1.2 	relating to state government; requiring the state
1.3 	employee health insurance plan to purchase
1.4 	prescription drugs through one pharmacy benefits
1.5 	manager; authorizing local units of government to
1.6 	participate in the drug purchasing program;
1.7 	appropriating money; amending Minnesota Statutes 2004,
1.8 	section 43A.311.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2004, section 43A.311, is
1.11 	amended to read:
1.12 	43A.311  DRUG PURCHASING PHARMACY BENEFITS PROGRAM.
1.13 		Subdivision 1.Pharmacy benefits management. The
1.14 	commissioner of employee relations, in conjunction with the
1.15 	commissioner of human services and other state agencies, shall
1.16 	evaluate whether participation in a multistate or multiagency
1.17 	drug purchasing program can reduce costs or improve the
1.18 	operations of the drug benefit programs administered by the
1.19 	department and other state agencies.  The commissioner and other
1.20 	state agencies may enter into a contract with a vendor or other
1.21 	states for purposes of participating in a multistate or
1.22 	multiagency drug purchasing program.The commissioner shall
1.23 	deliver pharmaceutical benefits provided under sections 43A.22
1.24 	to 43A.30 through a pharmacy benefits management system.  The
1.25 	commissioner may provide the pharmacy benefits management
1.26 	services directly, may contract with a third-party pharmacy
1.27 	benefits manager to provide the services, or may enter into a
2.1 	contract with other states for the purpose of participating in a
2.2 	multistate drug purchasing program.  The commissioner must
2.3 	revise any contracts with health care benefits administrators
2.4 	accordingly.
2.5 		Subd. 2.Preferred drug list. The pharmacy benefits
2.6 	manager, in consultation with the commissioner of human services
2.7 	and the Formulary Committee established under section 256B.0625,
2.8 	subdivision 13c, shall develop and implement a preferred drug
2.9 	list.  The pharmacy benefits manager shall customize the list of
2.10 	drugs to incorporate tiered cost-sharing arrangements to
2.11 	maximize medical efficacy and cost savings.
2.12 		Subd. 3.Local unit of government participation. (a) An
2.13 	eligible employer, as defined in section 43A.316, subdivision 2,
2.14 	paragraph (c), may elect to use the pharmacy benefits management
2.15 	system created under subdivision 1, provided that the exclusive
2.16 	representatives for participating employees have agreed to
2.17 	participate.
2.18 	(b) The commissioner may assess reasonable costs of
2.19 	administration for the system to a participating employer.
2.20 	Receipts from the assessments must be deposited in the pharmacy
2.21 	benefits management system fund established in the state
2.22 	treasury.  All money and interest in the fund is appropriated to
2.23 	the commissioner for the costs of administration under this
2.24 	subdivision.
2.25 	
EFFECTIVE DATE. This section is effective January 1, 2006.