SF 1738

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/21/2025 10:44 a.m.

A bill for an act
relating to human services; establishing a prescription drug purchasing program;
specifying program authority and eligibility requirements; requiring a report;
proposing coding for new law in Minnesota Statutes, chapter 256B.

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

Section 1.

new text begin [256B.86] PRESCRIPTION DRUG PURCHASING PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner of human services must administer
and oversee a Minnesota prescription drug purchasing program for prescription drugs
provided to program participants.
new text end

new text begin (b) For purposes of this section, "program participants" means medical assistance and
MinnesotaCare enrollees served under the fee-for-service and managed care delivery systems.
new text end

new text begin Subd. 2. new text end

new text begin Duties of commissioner. new text end

new text begin The commissioner must:
new text end

new text begin (1) make prescription drugs available at the lowest possible cost to program participants;
new text end

new text begin (2) promote health through the purchase and provision of discounted prescription drugs
and coordination of comprehensive prescription benefit services for program participants;
new text end

new text begin (3) maintain a list of prescription drugs recommended as the most effective prescription
drugs available at the best possible prices;
new text end

new text begin (4) administer prescription drug benefits for medical assistance and MinnesotaCare; and
new text end

new text begin (5) adjudicate pharmacy claims and transmit program prices and other information to
pharmacies.
new text end

new text begin Subd. 3. new text end

new text begin Program authority. new text end

new text begin (a) The commissioner, in consultation with the Formulary
Committee established under section 256B.0625, subdivision 13c, is authorized to:
new text end

new text begin (1) adopt or develop a preferred drug list;
new text end

new text begin (2) engage in price negotiations with prescription drug manufacturers, wholesalers, or
group purchasing organizations to obtain price discounts and rebates for prescription drugs
for program participants; and
new text end

new text begin (3) develop and manage a drug formulary for the program.
new text end

new text begin (b) The commissioner may contract with one or more entities to assist with any of the
functions described in paragraph (a) only for plan years 2026, 2027, and 2028. The
commissioner must make the final determinations for any function described in paragraph
(a).
new text end

new text begin Subd. 4. new text end

new text begin Pharmacies. new text end

new text begin The commissioner must set the terms and conditions for pharmacies
to participate in the program. The commissioner must enroll all pharmacies participating
as medical assistance providers, and any other pharmacy licensed under chapter 151 willing
to accept the terms and conditions, in the program.
new text end

new text begin Subd. 5. new text end

new text begin Federal approval. new text end

new text begin The commissioner must seek any necessary federal approvals
to implement this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026, or upon federal approval,
whichever is later. The commissioner of human services must notify the revisor of statutes
when federal approval is obtained.
new text end

Sec. 2. new text begin EXPANSION OF PRESCRIPTION DRUG PURCHASING PROGRAM.
new text end

new text begin The commissioner of human services, in consultation with the commissioners of
commerce and health, must develop recommendations for expanding the prescription drug
purchasing program established under Minnesota Statutes, section 256B.86, to include
enrollees of health plan companies that have contracted with the commissioner to participate
in the program. The recommendations must address the process and terms by which the
commissioner would contract with health plan companies to administer prescription drug
benefits and develop and manage a drug formulary. The commissioner must present a report
with recommendations to the chairs and ranking minority members of the legislative
committees with jurisdiction over commerce and health and human services policy and
finance by December 15, 2026.
new text end