Skip to main content Skip to office menu Skip to footer
Capital Icon Minnesota Legislature

Office of the Revisor of Statutes

SF 2477

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/02/2025 03:06 p.m.

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16
1.17 1.18 1.19 1.20
1.21 1.22 1.23 1.24 1.25
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8
2.9 2.10 2.11 2.12
2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22
2.23 2.24 2.25 2.26 2.27 2.28 2.29 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12
4.13 4.14 4.15 4.16
4.17 4.18 4.19 4.20 4.21
4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8
5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 6.1 6.2 6.3 6.4 6.5 6.6 6.7
6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18
6.19 6.20 6.21 6.22 6.23 6.24 6.25
6.26 6.27 6.28 6.29 6.30 6.31 6.32 7.1 7.2 7.3
7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13
7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10
8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18
8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 9.1 9.2 9.3
9.4 9.5 9.6 9.7 9.8
9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23
10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32
13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26
14.27 14.28 14.29 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34
16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24
16.25
16.26 16.27 16.28 16.29 16.30 16.31 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29
19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10
20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18
21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25
22.26 22.27 22.28 22.29 22.30
23.1 23.2 23.3 23.4 23.5 23.6
23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12
24.13 24.14 24.15 24.16 24.17 24.18 24.19
24.20 24.21

A bill for an act
relating to insurance; modifying commissioner of health authority over insurance
holding company systems; modifying Medicare supplement benefits; modifying
provisions governing renewability and discontinuation of health plans; modifying
reporting requirements related to the 340B drug program; modifying uniform
explanation of benefits specifications; requiring public posting of information
relating to prescription drug prices; requiring pharmacy benefit managers to submit
prescription drug fee information to the commissioner of health; amending
Minnesota Statutes 2024, sections 13.7191, subdivision 4; 60D.15, subdivision 3;
60D.21, subdivisions 1, 3; 60D.23; 62A.31, subdivisions 1r, 1w; 62A.65,
subdivisions 1, 2, by adding a subdivision; 62D.12, subdivisions 2, 2a; 62D.121,
subdivision 1; 62D.221, subdivision 1; 62J.461, subdivisions 3, 4, 5; 62J.51,
subdivision 19a; 62J.581; 62J.84, subdivisions 2, 3, 6, 10, 11, 12, 13, 14, 15;
62K.10, subdivisions 2, 5, 6; repealing Minnesota Statutes 2024, section 62K.10,
subdivision 3.

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

Section 1.

Minnesota Statutes 2024, section 13.7191, subdivision 4, is amended to read:


Subd. 4.

Insurance holding company systems; various insurance data.

Disclosure
of information obtained by the commissioner of commercenew text begin or healthnew text end under section 60D.18,
60D.19, or 60D.20 is governed by section 60D.22.

Sec. 2.

Minnesota Statutes 2024, section 60D.15, subdivision 3, is amended to read:


Subd. 3.

Commissioner.

The term "commissioner" means the commissioner of commercenew text begin
or, for the purposes of regulating health maintenance organizations, the commissioner of
health
new text end , the new text begin relevant new text end commissioner's deputies, or the Commerce new text begin or Health new text end Department, as
appropriate.

Sec. 3.

Minnesota Statutes 2024, section 60D.21, subdivision 1, is amended to read:


Subdivision 1.

Power of commissioner.

Subject to the limitation contained in this section
and in addition to the powers that the commissioner has under chapter 60Anew text begin or this chapternew text end
relating to the examination of insurers, the commissioner shall also have the power to
examine an insurer registered under section 60D.19 and its affiliates to ascertain the financial
condition of the insurer, including the enterprise risk to the insurer by the ultimate controlling
party, or by an entity or combination of entities within the insurance holding company
system, or by the insurance holding company system on a consolidated basis.

Sec. 4.

Minnesota Statutes 2024, section 60D.21, subdivision 3, is amended to read:


Subd. 3.

Expenses.

Each registered insurer producing for examination records, books,
and papers pursuant to subdivision 1 is liable for and shall pay the expense of the examination
in accordance with section 60A.03new text begin or 62D.14new text end .

Sec. 5.

Minnesota Statutes 2024, section 60D.23, is amended to read:


60D.23 RULES.

new text begin Subdivision 1. new text end

new text begin Commissioner of commerce. new text end

The commissioner new text begin of commerce new text end may
adopt the rules and orders that are necessary to carry out the provisions of this chapter.

new text begin Subd. 2. new text end

new text begin Commissioner of health. new text end

new text begin The commissioner of health may adopt rules and
orders that are necessary to carry out the provisions of this chapter as they relate to health
maintenance organizations. Health maintenance organizations are subject to and must comply
with the provisions of Minnesota Rules, chapter 2720, applicable to insurers, unless the
commissioner of health adopts rules for health maintenance organizations under this
subdivision.
new text end

Sec. 6.

Minnesota Statutes 2024, section 62A.31, subdivision 1r, is amended to read:


Subd. 1r.

Community rate.

new text begin (a) new text end Each health maintenance organization, health service
plan corporation, insurer, or fraternal benefit society that sells Medicare-related coverage
shall establish a separate community rate for that coverage. Beginning January 1, 1993, no
Medicare-related coverage may be offered, issued, sold, or renewed to a Minnesota resident,
except at the community rate required by this subdivision. The same community rate must
apply to newly issued coverage and to renewal coverage.

new text begin (b) new text end For coverage that supplements Medicare and for the Part A rate calculation for plans
governed by section 1833 of the federal Social Security Act, United States Code, title 42,
section 1395, et seq., the community rate may take into account only the following factors:

(1) actuarially valid differences in benefit designs or provider networks;

(2) geographic variations in rates if preapproved by the commissioner of commerce;
deleted text begin and
deleted text end

(3) premium reductions in recognition of healthy lifestyle behaviors, including but not
limited to, refraining from the use of tobacco. Premium reductions must be actuarially valid
and must relate only to those healthy lifestyle behaviors that have a proven positive impact
on health. Factors used by the health carrier making this premium reduction must be filed
with and approved by the commissioner of commercedeleted text begin .deleted text end new text begin ; and
new text end

new text begin (4) premium increases in recognition of late enrollment or reenrollment. A premium
increase of ten percent must be applied as a flat percentage of premium for an individual
who (i) enrolls in a Medicare supplement policy outside of the individual's initial enrollment
period in Medicare Part B, and (ii) is not eligible for a guaranteed issue period under
subdivision 1u.
new text end

new text begin (c) new text end For insureds not residing in Anoka, Carver, Chisago, Dakota, Hennepin, Ramsey,
Scott, or Washington County, a health plan may, at the option of the health carrier, phase
in compliance under the following timetable:

deleted text begin (i)deleted text end new text begin (1)new text end a premium adjustment as of March 1, 1993, that consists of one-half of the
difference between the community rate that would be applicable to the person as of March
1, 1993, and the premium rate that would be applicable to the person as of March 1, 1993,
under the rate schedule permitted on December 31, 1992. A health plan may, at the option
of the health carrier, implement the entire premium difference described in this clause for
any person as of March 1, 1993, if the premium difference would be 15 percent or less of
the premium rate that would be applicable to the person as of March 1, 1993, under the rate
schedule permitted on December 31, 1992, if the health plan does so uniformly regardless
of whether the premium difference causes premiums to rise or to fall. The premium difference
described in this clause is in addition to any premium adjustment attributable to medical
cost inflation or any other lawful factor and is intended to describe only the premium
difference attributable to the transition to the community rate; and

deleted text begin (ii)deleted text end new text begin (2)new text end with respect to any person whose premium adjustment was constrained under
clause deleted text begin (i)deleted text end new text begin (1)new text end , a premium adjustment as of January 1, 1994, that consists of the remaining
one-half of the premium difference attributable to the transition to the community rate, as
described in clause deleted text begin (i)deleted text end new text begin (1)new text end .

new text begin (d) new text end A health plan that initially follows the phase-in timetable may at any subsequent
time comply on a more rapid timetable. A health plan that is in full compliance as of January
1, 1993, may not use the phase-in timetable and must remain in full compliance. Health
plans that follow the phase-in timetable must charge the same premium rate for newly issued
coverage that they charge for renewal coverage. A health plan whose premiums are
constrained bynew text begin paragraph (c),new text end clause deleted text begin (i)deleted text end new text begin (1),new text end may take the constraint into account in
establishing its community rate.

new text begin (e) new text end From January 1, 1993 to February 28, 1993, a health plan may, at the health carrier's
option, charge the community rate under this paragraph or may instead charge premiums
permitted as of December 31, 1992.

Sec. 7.

Minnesota Statutes 2024, section 62A.31, subdivision 1w, is amended to read:


Subd. 1w.

Open enrollment.

A medicare supplement policy or certificate must not be
sold or issued to an deleted text begin eligibledeleted text end individual outside of the time periods described in deleted text begin subdivisiondeleted text end new text begin
subdivisions 1h and
new text end 1u.

Sec. 8.

Minnesota Statutes 2024, section 62A.65, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

No health carrier, as defined in section 62A.011, shall
offer, sell, issue, or renew any individual health plan, as defined in section 62A.011, to a
Minnesota resident except in compliance with this section. deleted text begin This section does not apply to
the Comprehensive Health Association established in section 62E.10.
deleted text end

Sec. 9.

Minnesota Statutes 2024, section 62A.65, subdivision 2, is amended to read:


Subd. 2.

Guaranteed renewal.

No individual health plan may be offered, sold, issued,
or renewed to a Minnesota resident unless the health plan provides that the plan is guaranteed
renewable at a premium rate that does not take into account the claims experience or any
change in the health status of any covered person that occurred after the initial issuance of
the health plan to the person. The premium rate upon renewal must also otherwise comply
with this section. A health carrier deleted text begin must not refusedeleted text end new text begin is prohibited from refusing new text end to renew deleted text begin andeleted text end new text begin
a Minnesota resident's
new text end individual health plandeleted text begin , except for nonpayment of premiums, fraud,
or misrepresentation.
deleted text end new text begin unless:
new text end

new text begin (1) the enrollee has failed to pay premiums in accordance with the health plan's terms,
including any timeliness requirements;
new text end

new text begin (2) the enrollee has performed an act or practice that constitutes fraud or made an
intentional misrepresentation of material fact under the health plan's terms;
new text end

new text begin (3) the enrollee no longer lives in the area where the issuer is authorized to operate;
new text end

new text begin (4) a health carrier discontinues an individual health plan as provided under subdivision
2a; or
new text end

new text begin (5) a health carrier discontinues issuing new individual health plans and refuses to renew
all of the health carrier's existing individual health plans issued in Minnesota as provided
under subdivision 8.
new text end

Sec. 10.

Minnesota Statutes 2024, section 62A.65, is amended by adding a subdivision to
read:


new text begin Subd. 2a. new text end

new text begin Discontinuing individual health plan. new text end

new text begin (a) In order to discontinue a particular
type of individual health plan in Minnesota for purposes of subdivision 2, clause (4), a health
carrier must:
new text end

new text begin (1) provide written notice to the commissioner that approves the individual health plan's
policy forms and filings, in the form and manner approved by the commissioner, regarding
the health carrier's intent to discontinue a particular type of individual health plan in
Minnesota. The notice must be provided no later than May 1 of the year before the date the
individual health plan intends to discontinue the particular type of individual health plan;
new text end

new text begin (2) provide written notice to each individual enrolled in the individual health plan no
later than 90 days before the date the coverage is discontinued;
new text end

new text begin (3) offer each individual covered by the individual health plan that the health carrier
intends to discontinue the option to purchase on a guaranteed-issue basis any other individual
health plan currently offered by the health carrier for individuals in that market; and
new text end

new text begin (4) act uniformly without regard to any factor relating to the health status factor of
covered individuals or dependents of covered individuals who may become eligible for
coverage.
new text end

new text begin (b) The commissioner may disapprove a health carrier discontinuing a particular type
of individual health plan within 60 days after receiving notice under paragraph (a) if the
commissioner determines discontinuing the plan is not in Minnesota policyholders' best
interest. When making the determination under this paragraph, the commissioner may
consider the size of plan enrollment, the availability of comparable individual health plan
options offered by the health carrier in Minnesota, or any other factor the commissioner
deems relevant.
new text end

new text begin (c) A health carrier may appeal the commissioner's determination under paragraph (b)
to disapprove the health carrier's plan to discontinue a particular type of individual health
plan in Minnesota. An appeal under this paragraph is subject to the contested case procedures
under chapter 14 and must be made within 30 days of the date the commissioner makes a
written determination under paragraph (b).
new text end

Sec. 11.

Minnesota Statutes 2024, section 62D.12, subdivision 2, is amended to read:


Subd. 2.

Coverage cancellation; nonrenewal.

No health maintenance organization may
cancel or fail to renew the coverage of an enrollee except for (1) failure to pay the charge
for health care coverage; (2) termination of the health care plannew text begin subject to section 62A.65,
subdivisions 2 and 2a
new text end ; (3) termination of the group plan; (4) enrollee moving out of the area
served, subject to section 62A.17, subdivisions 1 and 6, and section 62D.104; (5) enrollee
moving out of an eligible group, subject to section 62A.17, subdivisions 1 and 6, and section
62D.104; (6) failure to deleted text begin make co-payments required bydeleted text end new text begin pay premiums as provided by the
terms of
new text end the health care plannew text begin , including timeliness requirementsnew text end ; (7) fraud or
misrepresentation by the enrollee with respect to eligibility for coverage or any other material
fact; or (8) other reasons established in rules promulgated by the commissioner of health.

Sec. 12.

Minnesota Statutes 2024, section 62D.12, subdivision 2a, is amended to read:


Subd. 2a.

Cancellation or nonrenewal notice.

Enrollees shall be given 30 days' notice
of any cancellation or nonrenewal, except thatnew text begin : (1) enrollees in a plan terminated under
section 62A.65, subdivision 2, clause (4), and 2a, must receive the 90 days' notice required
under section 62A.65, subdivision 2a, paragraph (a), clause (2); and (2)
new text end enrollees who are
eligible to receive replacement coverage under section 62D.121, subdivision 1, shall receive
90 days' notice as provided under section 62D.121, subdivision 5.

Sec. 13.

Minnesota Statutes 2024, section 62D.121, subdivision 1, is amended to read:


Subdivision 1.

Replacement coverage.

When membership of an enrollee who has
individual health coverage is terminated by the health maintenance organization for a reason
other than (a) failure to pay the charge for health care coverage; (b) failure to deleted text begin make
co-payments required by
deleted text end new text begin pay premiums as provided by the terms ofnew text end the health care plannew text begin ,
new text end new text begin including timeliness requirementsnew text end ; (c) enrollee moving out of the area served; or (d) a
materially false statement or misrepresentation by the enrollee in the application for
membership, the health maintenance organization must offer or arrange to offer replacement
coverage, without evidence of insurability, without preexisting condition exclusions, and
without interruption of coverage.

Sec. 14.

Minnesota Statutes 2024, section 62D.221, subdivision 1, is amended to read:


Subdivision 1.

Insurance provisions applicable to health maintenance
organizations.

Health maintenance organizations are subject to sections 60A.135, 60A.136,
60A.137, 60A.16,new text begin andnew text end 60A.161deleted text begin , 60D.17, 60D.18, and 60D.20deleted text end and must comply with the
provisions of these sections applicable to insurers. deleted text begin In applying these sections to health
maintenance organizations, "commissioner" means the commissioner of health. Health
maintenance organizations are subject to Minnesota Rules, chapter 2720, as applicable to
sections 60D.17, 60D.18, and 60D.20, and must comply with the provisions of chapter 2720
applicable to insurers, unless the commissioner of health adopts rules to implement this
subdivision.
deleted text end

Sec. 15.

Minnesota Statutes 2024, section 62J.461, subdivision 3, is amended to read:


Subd. 3.

Reporting by covered entities to the commissioner.

(a) Each 340B covered
entity shall report to the commissioner by April 1 of each year the following information
for transactions conducted by the 340B covered entity or on its behalf, and related to its
participation in the federal 340B program for the previous calendar year:

(1) the aggregated acquisition cost for prescription drugs obtained under the 340B
program;

(2) the aggregated payment amount received for drugs obtained under the 340B program
and dispensed or administered to patientsdeleted text begin ;deleted text end new text begin :
new text end

new text begin (i) that are net of the contracted price for insurance claims payments; and
new text end

new text begin (ii) that reflect the portion of payment received from grants, cash, or other payment types
that relate to the dispensing or administering of drugs obtained under the 340B program;
new text end

(3) the number of pricing units dispensed or administered for prescription drugs described
in clause (2); and

(4) the aggregated payments made:

(i) to contract pharmacies to dispense drugs obtained under the 340B program;

(ii) to any other entity that is not the covered entity and is not a contract pharmacy for
managing any aspect of the covered entity's 340B program; and

(iii) for deleted text begin alldeleted text end other new text begin internal, direct new text end expenses related to administering the 340B programnew text begin
with a detailed description of the direct costs included
new text end .

The information under clauses (2) and (3) must be reported by payer type, including but
not limited to commercial insurance, medical assistance, MinnesotaCare, and Medicare, in
the form and manner prescribed by the commissioner.

(b) For covered entities that are hospitals, the information required under paragraph (a),
clauses (1) to (3), must also be reported at the national drug code level for the 50 most
frequently dispensed or administered drugs by the facility under the 340B program.

(c) Data submitted to the commissioner under paragraphs (a) and (b) are classified as
nonpublic data, as defined in section 13.02, subdivision 9.

Sec. 16.

Minnesota Statutes 2024, section 62J.461, subdivision 4, is amended to read:


Subd. 4.

Enforcement and exceptions.

(a) Any deleted text begin health caredeleted text end new text begin coverednew text end entity subject to
reporting under this section that fails to provide data in the form and manner prescribed by
the commissioner is subject tonew text begin the levy ofnew text end a fine deleted text begin paid to the commissionerdeleted text end of up to $500 for
each day the data are past due. Any fine levied against the entity under this subdivision is
subject to the contested case and judicial review provisions of sections 14.57 deleted text begin anddeleted text end new text begin tonew text end 14.69.

(b) The commissioner may grant an entity an extension of or exemption from the reporting
obligations under this deleted text begin subdivisiondeleted text end new text begin sectionnew text end , upon a showing of good cause by the entity.

Sec. 17.

Minnesota Statutes 2024, section 62J.461, subdivision 5, is amended to read:


Subd. 5.

Reports to the legislature.

By November 15, 2024, and by November 15 of
each year thereafter, the commissioner shall submit to the chairs and ranking minority
members of the legislative committees with jurisdiction over health care finance and policy,
a report that aggregates the data submitted under subdivision 3, paragraphs (a) and (b). deleted text begin The
following information must be included in the report
deleted text end For all 340B entities whose net 340B
revenue constitutes a significant share, as determined by the commissioner, of all net 340B
revenue across all 340B covered entities in Minnesotanew text begin , the following information must also
be included in the report
new text end :

(1) the information submitted under subdivision 2; and

(2) for each 340B entity identified in subdivision 2, that entity's 340B net revenue as
calculated using the data submitted under subdivision 3, paragraph (a), with net revenue
being subdivision 3, paragraph (a), clause (2), less the sum of subdivision 3, paragraph (a),
clauses (1) and (4).

For all other entities, the data in the report must be aggregated to the entity type or groupings
of entity types in a manner that prevents the identification of an individual entity and any
entity's specific data value reported for an individual data element.

Sec. 18.

Minnesota Statutes 2024, section 62J.51, subdivision 19a, is amended to read:


Subd. 19a.

Uniform explanation of benefits deleted text begin documentdeleted text end .

"Uniform explanation of
benefits deleted text begin documentdeleted text end " means new text begin either new text end the document associated with and explaining the details
of a group purchaser's claim adjudication for services renderednew text begin or its electronic equivalent
under section 62J.581
new text end , which is sent to a patient.

Sec. 19.

Minnesota Statutes 2024, section 62J.581, is amended to read:


62J.581 STANDARDS FOR MINNESOTA UNIFORM HEALTH CARE
REIMBURSEMENT DOCUMENTS.

Subdivision 1.

Minnesota uniform remittance advice.

All group purchasers shall
provide a uniform claim payment/advice transaction to health care providers when a claim
is adjudicated. The uniform claim payment/advice transaction shall comply with section
62J.536, subdivision 1, paragraph (b), and rules adopted under section 62J.536, subdivision
2.

Subd. 2.

Minnesota uniform explanation of benefits deleted text begin documentdeleted text end .

(a) All group
purchasers shall provide a uniform explanation of benefits deleted text begin documentdeleted text end to health care patients
when an explanation of benefits deleted text begin documentdeleted text end is provided as otherwise required or permitted
by law. The uniform explanation of benefits deleted text begin documentdeleted text end shall comply with the standards
prescribed in this section.

(b) Notwithstanding paragraph (a), this section does not apply to group purchasers not
included as covered entities under United States Code, title 42, sections 1320d to 1320d-8,
as amended from time to time, and the regulations promulgated under those sections.

Subd. 3.

Scope.

For purposes of sections 62J.50 to 62J.61, the deleted text begin uniform claim
payment/advice transaction and
deleted text end uniform explanation of benefits deleted text begin documentdeleted text end format specified
in subdivision 4 shall apply to all health care services delivered by a health care provider
or health care provider organization in Minnesota, regardless of the location of the payer.
Health care services not paid on an individual claims basis, such as capitated payments, are
not included in this section. A health plan company is excluded from the requirements in
deleted text begin subdivisions 1 anddeleted text end new text begin subdivisionnew text end 2 if they comply with section 62A.01, subdivisions 2 and
3.

Subd. 4.

Specifications.

new text begin (a) new text end The uniform explanation of benefits deleted text begin documentdeleted text end shall be
provided by use of a paper document conforming to the specifications in this sectionnew text begin or its
electronic equivalent under paragraph (b)
new text end .

new text begin (b) Group purchasers may make the uniform explanation of benefits available in a version
that can be accessed by health care patients electronically if:
new text end

new text begin (1) the group purchaser making the uniform explanation of benefits available
electronically provides health care patients the ability to choose whether to receive paper,
electronic, or both paper and electronic versions of their uniform explanation of benefits;
new text end

new text begin (2) the group purchaser provides clear, readily accessible information and instructions
for the patient to communicate their choice; and
new text end

new text begin (3) health care patients not responding to the opportunity to make a choice will receive
at a minimum a paper uniform explanation of benefits.
new text end

new text begin (c) new text end The commissioner, after consulting with the Administrative Uniformity Committee,
shall specify the data elements and definitions for the new text begin paper new text end uniform explanation of benefits
deleted text begin documentdeleted text end . deleted text begin The commissioner and the Administrative Uniformity Committee must consult
with the Minnesota Dental Association and Delta Dental Plan of Minnesota before requiring
under this section the use of a paper document for the uniform explanation of benefits
document or the uniform claim payment/advice transaction for dental care services.
deleted text end new text begin Any
electronic version of the uniform explanation of benefits must use the same data elements
and definitions as the paper uniform explanation of benefits.
new text end

deleted text begin Subd. 5. deleted text end

deleted text begin Effective date. deleted text end

deleted text begin The requirements in subdivisions 1 and 2 are effective June 30,
2007. The requirements in subdivisions 1 and 2 apply regardless of when the health care
service was provided to the patient.
deleted text end

Sec. 20.

Minnesota Statutes 2024, section 62J.84, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For purposes of this section, the terms defined in this subdivision
have the meanings given.

(b) "Biosimilar" means a drug that is produced or distributed pursuant to a biologics
license application approved under United States Code, title 42, section 262(K)(3).

(c) "Brand name drug" means a drug that is produced or distributed pursuant to:

(1) a new drug application approved under United States Code, title 21, section 355(c),
except for a generic drug as defined under Code of Federal Regulations, title 42, section
447.502; or

(2) a biologics license application approved under United States Code, title 42, section
262(a)(c).

(d) "Commissioner" means the commissioner of health.

(e) "Generic drug" means a drug that is marketed or distributed pursuant to:

(1) an abbreviated new drug application approved under United States Code, title 21,
section 355(j);

(2) an authorized generic as defined under Code of Federal Regulations, title 42, section
447.502; or

(3) a drug that entered the market the year before 1962 and was not originally marketed
under a new drug application.

(f) "Manufacturer" means a drug manufacturer licensed under section 151.252.

(g) "New prescription drug" or "new drug" means a prescription drug approved for
marketing by the United States Food and Drug Administration (FDA) for which no previous
wholesale acquisition cost has been established for comparison.

(h) "Patient assistance program" means a program that a manufacturer offers to the public
in which a consumer may reduce the consumer's out-of-pocket costs for prescription drugs
by using coupons, discount cards, prepaid gift cards, manufacturer debit cards, or by other
means.

(i) "Prescription drug" or "drug" has the meaning provided in section 151.441, subdivision
8.

(j) "Price" means the wholesale acquisition cost as defined in United States Code, title
42, section 1395w-3a(c)(6)(B).

(k) "30-day supply" means the total daily dosage units of a prescription drug
recommended by the prescribing label approved by the FDA for 30 days. If the
FDA-approved prescribing label includes more than one recommended daily dosage, the
30-day supply is based on the maximum recommended daily dosage on the FDA-approved
prescribing label.

(l) "Course of treatment" means the total dosage of a single prescription for a prescription
drug recommended by the FDA-approved prescribing label. If the FDA-approved prescribing
label includes more than one recommended dosage for a single course of treatment, the
course of treatment is the maximum recommended dosage on the FDA-approved prescribing
label.

(m) "Drug product family" means a group of one or more prescription drugs that share
a unique generic drug description or nontrade name and dosage form.

deleted text begin (n) "Individual salable unit" means the smallest container of product introduced into
commerce by the manufacturer or repackager that is intended by the manufacturer or
repackager for individual sale to a dispenser.
deleted text end

deleted text begin (o)deleted text end new text begin (n)new text end "National drug code" means the three-segment code maintained by the federal
Food and Drug Administration that includes a labeler code, a product code, and a package
code for a drug product and that has been converted to an 11-digit format consisting of five
digits in the first segment, four digits in the second segment, and two digits in the third
segment. A three-segment code shall be considered converted to an 11-digit format when,
as necessary, at least one "0" has been added to the front of each segment containing less
than the specified number of digits such that each segment contains the specified number
of digits.

deleted text begin (p)deleted text end new text begin (o)new text end "Pharmacy" or "pharmacy provider" means a community/outpatient pharmacy
as defined in Minnesota Rules, part 6800.0100, subpart 2, that is also licensed as a pharmacy
by the Board of Pharmacy under section 151.19.

deleted text begin (q)deleted text end new text begin (p)new text end "Pharmacy benefit manager" or "PBM" means an entity licensed to act as a
pharmacy benefit manager under section 62W.03.

deleted text begin (r)deleted text end new text begin (q)new text end "Pricing unit" means the smallest dispensable amount of a prescription drug
product that could be dispensednew text begin or administerednew text end .

deleted text begin (s)deleted text end new text begin (r)new text end "Rebate" means a discount, chargeback, or other price concession that affects the
price of a prescription drug product, regardless of whether conferred through regular
aggregate payments, on a claim-by-claim basis at the point of sale, as part of retrospective
financial reconciliations, including reconciliations that also reflect other contractual
arrangements, or by any other method. "Rebate" does not mean a bona fide service fee as
defined in Code of Federal Regulations, title 42, section 447.502.

deleted text begin (t)deleted text end new text begin (s)new text end "Reporting entity" means any manufacturer, pharmacy, pharmacy benefit manager,
wholesale drug distributor, or any other entity required to submit data under this section.

deleted text begin (u)deleted text end new text begin (t)new text end "Wholesale drug distributor" or "wholesaler" means an entity thatdeleted text begin :
deleted text end

deleted text begin (1)deleted text end is licensed to act as a wholesale drug distributor under section 151.47deleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (2) distributes prescription drugs, for which it is not the manufacturer, to persons or
entities, or both, other than a consumer or patient in the state.
deleted text end

Sec. 21.

Minnesota Statutes 2024, section 62J.84, subdivision 3, is amended to read:


Subd. 3.

Prescription drug price increases reporting.

(a) Beginning January 1, 2022,
a drug manufacturer must submit to the commissioner the information described in paragraph
(b) for each prescription drug for which the price was $100 or greater for a 30-day supply
or for a course of treatment lasting less than 30 days deleted text begin and:
deleted text end

deleted text begin (1) for brand name drugsdeleted text end where there is an increase of ten percent or greater in the price
over the previous 12-month period or an increase of 16 percent or greater in the price over
the previous 24-month perioddeleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (2) for generic or biosimilar drugs where there is an increase of 50 percent or greater in
the price over the previous 12-month period.
deleted text end

(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to
the commissioner no later than 60 days after the price increase goes into effect, in the form
and manner prescribed by the commissioner, the following information, if applicable:

(1) the description and price of the drug and the net increase, expressed as a percentage,
with the following listed separately:

(i) the national drug code;

(ii) the product name;

(iii) the dosage form;

(iv) the strength; and

(v) the package size;

(2) the factors that contributed to the price increase;

(3) the name of any generic version of the prescription drug available on the market;

new text begin (4) the year the prescription drug was introduced for sale in the United States;
new text end

deleted text begin (4)deleted text end new text begin (5)new text end the introductory price of the prescription drug when it was introduced for sale in
the United States and the price of the drug on the last day of each of the five calendar years
preceding the price increase;

deleted text begin (5)deleted text end new text begin (6)new text end the direct costs incurred during the previous 12-month period by the manufacturer
that are associated with the prescription drug, listed separately:

(i) to manufacture the prescription drug;

(ii) to market the prescription drug, including advertising costs; and

(iii) to distribute the prescription drug;

new text begin (7) the number of units of the prescription drug sold during the previous 12-month period;
new text end

deleted text begin (6)deleted text end new text begin (8)new text end the total sales revenue for the prescription drug during the previous 12-month
period;

new text begin (9) the total rebate payable amount accrued for the prescription drug during the previous
12-month period;
new text end

deleted text begin (7)deleted text end new text begin (10)new text end the manufacturer's net profit attributable to the prescription drug during the
previous 12-month period;

deleted text begin (8)deleted text end new text begin (11)new text end the total amount of financial assistance the manufacturer has provided through
patient prescription assistance programs during the previous 12-month period, if applicable;

deleted text begin (9)deleted text end new text begin (12)new text end any agreement between a manufacturer and another entity contingent upon any
delay in offering to market a generic version of the prescription drug;

deleted text begin (10)deleted text end new text begin (13)new text end the patent expiration date of the prescription drug if it is under patent;

deleted text begin (11)deleted text end new text begin (14)new text end the name and location of the company that manufactured the drug;

deleted text begin (12)deleted text end new text begin (15)new text end if a brand name prescription drug, the highest price paid for the prescription
drug during the previous calendar year in the ten countries, excluding the United States,
that charged the highest single price for the prescription drug; and

deleted text begin (13)deleted text end new text begin (16)new text end if the prescription drug was acquired by the manufacturer during the previous
12-month period, all of the following information:

(i) price at acquisition;

(ii) price in the calendar year prior to acquisition;

(iii) name of the company from which the drug was acquired;

(iv) date of acquisition; and

(v) acquisition price.

(c) The manufacturer may submit any documentation necessary to support the information
reported under this subdivision.

Sec. 22.

Minnesota Statutes 2024, section 62J.84, subdivision 6, is amended to read:


Subd. 6.

Public posting of prescription drug price information.

(a) The commissioner
shall post on the department's website, or may contract with a private entity or consortium
that satisfies the standards of section 62U.04, subdivision 6, to meet this requirement, the
following information:

(1) a list of the prescription drugs reported under subdivisions 3, 4, and 11 to 14 and the
manufacturers of those prescription drugs; deleted text begin and
deleted text end

new text begin (2) a list of reporting entities that reported prescription drug price information under
subdivisions 3, 4, and 11 to 14; and
new text end

deleted text begin (2)deleted text end new text begin (3)new text end information reported to the commissioner under subdivisions 3, 4, and 11 to 14new text begin ,
aggregated on a per-drug basis in a manner that does not allow the identification of a reporting
entity that is not the manufacturer of the drug
new text end .

(b) The information must be published in an easy-to-read format and in a manner that
identifies the information that is disclosed on a per-drug basis and must not be aggregated
in a manner that prevents the identification of the prescription drug.

(c) The commissioner shall not post to the department's website or a private entity
contracting with the commissioner shall not post any information described in this section
if the information is not public data under section 13.02, subdivision 8a; or is trade secret
information under section 13.37, subdivision 1, paragraph (b); or is trade secret information
pursuant to the Defend Trade Secrets Act of 2016, United States Code, title 18, section
1836, as amended. If a reporting entity believes information should be withheld from public
disclosure pursuant to this paragraph, the reporting entity must clearly and specifically
identify that information and describe the legal basis in writing when the reporting entity
submits the information under this section. If the commissioner disagrees with the reporting
entity's request to withhold information from public disclosure, the commissioner shall
provide the reporting entity written notice that the information will be publicly posted 30
days after the date of the notice.

(d) If the commissioner withholds any information from public disclosure pursuant to
this subdivision, the commissioner shall post to the department's website a report describing
the nature of the information and the commissioner's basis for withholding the information
from disclosure.

(e) To the extent the information required to be posted under this subdivision is collected
and made available to the public by another state, by the University of Minnesota, or through
an online drug pricing reference and analytical tool, the commissioner may reference the
availability of this drug price data from another source including, within existing
appropriations, creating the ability of the public to access the data from the source for
purposes of meeting the reporting requirements of this subdivision.

Sec. 23.

Minnesota Statutes 2024, section 62J.84, subdivision 10, is amended to read:


Subd. 10.

Notice of prescription drugs of substantial public interest.

(a) No later than
January 31, 2024, and quarterly thereafter, the commissioner shall produce and post on the
department's website a list of prescription drugs that the commissioner determines to represent
a substantial public interest and for which the commissioner intends to request data under
subdivisions 11 to 14, subject to paragraph (c). The commissioner shall base its inclusion
of prescription drugs on any information the commissioner determines is relevant to providing
greater consumer awareness of the factors contributing to the cost of prescription drugs in
the state, and the commissioner shall consider drug product families that include prescription
drugs:

(1) that triggered reporting under subdivision 3 or 4 during the previous calendar quarter;

(2) for which average claims paid amounts exceeded 125 percent of the price as of the
claim incurred date during the most recent calendar quarter for which claims paid amounts
are available; or

(3) that are identified by members of the public during a public comment process.

(b) Not sooner than 30 days after publicly posting the list of prescription drugs under
paragraph (a), the department shall notify, via email, reporting entities registered with the
department ofnew text begin :
new text end

new text begin (1)new text end the requirement to report under subdivisions 11 to 14deleted text begin .deleted text end new text begin ; and
new text end

new text begin (2) the reporting period for which data must be provided.
new text end

(c) The commissioner must not designate more than 500 prescription drugs as having a
substantial public interest in any one notice.

(d) Notwithstanding subdivision 16, the commissioner is exempt from chapter 14,
including section 14.386, in implementing this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 24.

Minnesota Statutes 2024, section 62J.84, subdivision 11, is amended to read:


Subd. 11.

Manufacturer prescription drug substantial public interest reporting.

(a)
Beginning January 1, 2024, a manufacturer must submit to the commissioner the information
described in paragraph (b) for any prescription drug:

(1) included in a notification to report issued to the manufacturer by the department
under subdivision 10;

(2) which the manufacturer manufactures or repackages;

(3) for which the manufacturer sets the wholesale acquisition cost; and

(4) for which the manufacturer has not submitted data under subdivision 3 during the
120-day period prior to the date of the notification to report.

(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to
the commissioner no later than 60 days after the date of the notification to report, in the
form and manner prescribed by the commissioner, the following information, if applicable:

(1) a description of the drug with the following listed separately:

(i) the national drug code;

(ii) the product name;

(iii) the dosage form;

(iv) the strength; and

(v) the package size;

(2) the price of the drug product on the later of:

(i) the day one year prior to the date of the notification to report;

(ii) the introduced to market date; or

(iii) the acquisition date;

(3) the price of the drug product on the date of the notification to report;

new text begin (4) the year the prescription drug was introduced for sale in the United States;
new text end

deleted text begin (4)deleted text end new text begin (5)new text end the introductory price of the prescription drug when it was introduced for sale in
the United States and the price of the drug on the last day of each of the five calendar years
preceding the date of the notification to report;

deleted text begin (5)deleted text end new text begin (6)new text end the direct costs incurred during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting
period specified in
new text end the notification to report by the manufacturers that are associated with
the prescription drug, listed separately:

(i) to manufacture the prescription drug;

(ii) to market the prescription drug, including advertising costs; and

(iii) to distribute the prescription drug;

deleted text begin (6)deleted text end new text begin (7)new text end the number of units of the prescription drug sold during the deleted text begin 12-month period
prior to the date of
deleted text end new text begin reporting period specified innew text end the notification to report;

deleted text begin (7)deleted text end new text begin (8)new text end the total sales revenue for the prescription drug during the deleted text begin 12-month period prior
to the date of
deleted text end new text begin reporting period specified innew text end the notification to report;

deleted text begin (8)deleted text end new text begin (9)new text end the total rebate payable amount accrued for the prescription drug during the
deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification to report;

deleted text begin (9)deleted text end new text begin (10)new text end the manufacturer's net profit attributable to the prescription drug during the
deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification to report;

deleted text begin (10)deleted text end new text begin (11)new text end the total amount of financial assistance the manufacturer has provided through
patient prescription assistance programs during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin
reporting period specified in
new text end the notification to report, if applicable;

deleted text begin (11)deleted text end new text begin (12)new text end any agreement between a manufacturer and another entity contingent upon
any delay in offering to market a generic version of the prescription drug;

deleted text begin (12)deleted text end new text begin (13)new text end the patent expiration date of the prescription drug if the prescription drug is
under patent;

deleted text begin (13)deleted text end new text begin (14)new text end the name and location of the company that manufactured the drug;

deleted text begin (14)deleted text end new text begin (15)new text end if the prescription drug is a brand name prescription drug, the ten countries
other than the United States that paid the highest prices for the prescription drug during the
previous calendar year and their prices; and

deleted text begin (15)deleted text end new text begin (16)new text end if the prescription drug was acquired by the manufacturer within deleted text begin a 12-month
period prior to the date of
deleted text end new text begin the reporting period specified innew text end the notification to report, all of
the following information:

(i) the price at acquisition;

(ii) the price in the calendar year prior to acquisition;

(iii) the name of the company from which the drug was acquired;

(iv) the date of acquisition; and

(v) the acquisition price.

(c) The manufacturer may submit any documentation necessary to support the information
reported under this subdivision.

Sec. 25.

Minnesota Statutes 2024, section 62J.84, subdivision 12, is amended to read:


Subd. 12.

Pharmacy prescription drug substantial public interest reporting.

(a)
Beginning January 1, 2024, a pharmacy must submit to the commissioner the information
described in paragraph (b) for any prescription drugnew text begin :
new text end

new text begin (1)new text end included in a notification to report issued to the pharmacy by the department under
subdivision 10deleted text begin .deleted text end new text begin ; and
new text end

new text begin (2) that the pharmacy dispensed in Minnesota or mailed to a Minnesota address.
new text end

(b) For each of the drugs described in paragraph (a), the pharmacy shall submit to the
commissioner no later than 60 days after the date of the notification to report, in the form
and manner prescribed by the commissioner, the following information, if applicable:

(1) a description of the drug with the following listed separately:

(i) the national drug code;

(ii) the product name;

(iii) the dosage form;

(iv) the strength; and

(v) the package size;

(2) the number of units of the drug acquired during the deleted text begin 12-month period prior to the date
of
deleted text end new text begin reporting period specified innew text end the notification to report;

(3) the total spent before rebates by the pharmacy to acquire the drug during the deleted text begin 12-month
period prior to the date of
deleted text end new text begin reporting period specified innew text end the notification to report;

(4) the total rebate receivable amount accrued by the pharmacy for the drug during the
deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification to report;

(5) the number of pricing units of the drug dispensed by the pharmacy during the
deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification to report;

(6) the total payment receivable by the pharmacy for dispensing the drug including
ingredient cost, dispensing fee, and administrative fees during the deleted text begin 12-month period prior
to the date of
deleted text end new text begin reporting period specified innew text end the notification to report;

(7) the total rebate payable amount accrued by the pharmacy for the drug during the
deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification to report;
and

(8) the average cash price paid by consumers per pricing unit for prescriptions dispensed
where no claim was submitted to a health care service plan or health insurer during the
deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification to report.

(c) The pharmacy may submit any documentation necessary to support the information
reported under this subdivision.

(d) The commissioner may grant extensions, exemptions, or both to compliance with
the requirements of paragraphs (a) and (b) by small or independent pharmacies, if compliance
with paragraphs (a) and (b) would represent a hardship or undue burden to the pharmacy.
The commissioner may establish procedures for small or independent pharmacies to request
extensions or exemptions under this paragraph.

Sec. 26.

Minnesota Statutes 2024, section 62J.84, subdivision 13, is amended to read:


Subd. 13.

PBM prescription drug substantial public interest reporting.

(a) Beginning
January 1, 2024, a PBM must submit to the commissioner the information described in
paragraph (b) for any prescription drugnew text begin :
new text end

new text begin (1)new text end included in a notification to report issued to the PBM by the department under
subdivision 10deleted text begin .deleted text end new text begin ; and
new text end

new text begin (2) for which the PBM fulfilled pharmacy benefit management duties for Minnesota
residents.
new text end

(b) For each of the drugs described in paragraph (a), the PBM shall submit to the
commissioner no later than 60 days after the date of the notification to report, in the form
and manner prescribed by the commissioner, the following information, if applicable:

(1) a description of the drug with the following listed separately:

(i) the national drug code;

(ii) the product name;

(iii) the dosage form;

(iv) the strength; and

(v) the package size;

(2) the number of pricing units of the drug product filled deleted text begin for which the PBM administered
claims
deleted text end during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the
notification to report;

(3) the total reimbursement amount accrued and payable to pharmacies for pricing units
of the drug product filled deleted text begin for which the PBM administered claimsdeleted text end during the deleted text begin 12-month
period prior to the date of
deleted text end new text begin reporting period specified innew text end the notification to report;

(4) the total reimbursement deleted text begin or administrative feedeleted text end amountdeleted text begin , or both,deleted text end accrued and receivable
from payers for pricing units of the drug product filled deleted text begin for which the PBM administered
claims
deleted text end during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the
notification to report;

new text begin (5) the total administrative fee amount accrued and receivable from payers for pricing
units of the drug product filled during the reporting period specified in the notification to
report;
new text end

deleted text begin (5)deleted text end new text begin (6)new text end the total rebate receivable amount accrued by the PBM for the drug product
during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification
to report; and

deleted text begin (6)deleted text end new text begin (7)new text end the total rebate payable amount accrued by the PBM for the drug product during
the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification to
report.

(c) The PBM may submit any documentation necessary to support the information
reported under this subdivision.

Sec. 27.

Minnesota Statutes 2024, section 62J.84, subdivision 14, is amended to read:


Subd. 14.

Wholesale drug distributor prescription drug substantial public interest
reporting.

(a) Beginning January 1, 2024, a wholesale drug distributornew text begin that distributes
prescription drugs, for which it is not the manufacturer, to persons or entities, or both, other
than a consumer or patient in the state,
new text end must submit to the commissioner the information
described in paragraph (b) for any prescription drugnew text begin :
new text end

new text begin (1)new text end included in a notification to report issued to the wholesale drug distributor by the
department under subdivision 10deleted text begin .deleted text end new text begin ; and
new text end

new text begin (2) that the wholesale drug distributor distributed within or into Minnesota.
new text end

(b) For each of the drugs described in paragraph (a), the wholesale drug distributor shall
submit to the commissioner no later than 60 days after the date of the notification to report,
in the form and manner prescribed by the commissioner, the following information, if
applicable:

(1) a description of the drug with the following listed separately:

(i) the national drug code;

(ii) the product name;

(iii) the dosage form;

(iv) the strength; and

(v) the package size;

(2) the number of units of the drug product acquired by the wholesale drug distributor
during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification
to report;

(3) the total spent before rebates by the wholesale drug distributor to acquire the drug
product during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the
notification to report;

(4) the total rebate receivable amount accrued by the wholesale drug distributor for the
drug product during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end
the notification to report;

(5) the number of units of the drug product sold by the wholesale drug distributor during
the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the notification to
report;

(6) gross revenue from sales in the United States generated by the wholesale drug
distributor for deleted text begin thisdeleted text end new text begin thenew text end drug product during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting
period specified in
new text end the notification to report; and

(7) total rebate payable amount accrued by the wholesale drug distributor for the drug
product during the deleted text begin 12-month period prior to the date ofdeleted text end new text begin reporting period specified innew text end the
notification to report.

(c) The wholesale drug distributor may submit any documentation necessary to support
the information reported under this subdivision.

Sec. 28.

Minnesota Statutes 2024, section 62J.84, subdivision 15, is amended to read:


Subd. 15.

Registration requirements.

deleted text begin Beginningdeleted text end new text begin Effectivenew text end January 1, deleted text begin 2024deleted text end new text begin 2026new text end , a
reporting entity subject to this chapter shall registernew text begin , or update existing registration
information,
new text end with the department in a form and manner prescribed by the commissionernew text begin by
January 30 of each year
new text end .

Sec. 29.

Minnesota Statutes 2024, section 62K.10, subdivision 2, is amended to read:


Subd. 2.

deleted text begin Primary care; mental health services; general hospital servicesdeleted text end new text begin Time and
distance standards
new text end .

deleted text begin The maximum travel distance or time shall be the lesser of 30 miles
or 30 minutes to the nearest provider of each of the following services: primary care services,
mental health services, and general hospital services
deleted text end new text begin Health carriers must meet the time and
distance standards under Code of Federal Regulations, title 45, section 155.1050
new text end .

Sec. 30.

Minnesota Statutes 2024, section 62K.10, subdivision 5, is amended to read:


Subd. 5.

Waiver.

(a) A health carrier may apply to the commissioner of health for a
waiver of the requirements in subdivision 2 deleted text begin or 3deleted text end if it is unable to meet the statutory
requirements. A waiver application must be submitted on a form provided by the
commissioner, must be accompanied by an application fee of $500 for each application to
waive the requirements in subdivision 2 deleted text begin or 3deleted text end for one or more provider types per county, and
must:

(1) demonstrate with specific data that the requirement of subdivision 2 deleted text begin or 3deleted text end is not
feasible in a particular service area or part of a service area; and

(2) include specific information as to the steps that were and will be taken to address
the network inadequacy, and, for steps that will be taken prospectively to address network
inadequacy, the time frame within which those steps will be taken.

(b) The commissioner shall establish guidelines for evaluating waiver applications,
standards governing approval or denial of a waiver application, and standards for steps that
health carriers must take to address the network inadequacy and allow the health carrier to
meet network adequacy requirements within a reasonable time period. The commissioner
shall review each waiver application using these guidelines and standards and shall approve
a waiver application only if:

(1) the standards for approval established by the commissioner are satisfied; and

(2) the steps that were and will be taken to address the network inadequacy and the time
frame for taking these steps satisfy the standards established by the commissioner.

(c) If, in its waiver application, a health carrier demonstrates to the commissioner that
there are no providers of a specific type or specialty in a county, the commissioner may
approve a waiver in which the health carrier is allowed to address network inadequacy in
that county by providing for patient access to providers of that type or specialty via telehealth,
as defined in section 62A.673, subdivision 2.

(d) The waiver shall automatically expire after one year. Upon or prior to expiration of
a waiver, a health carrier unable to meet the requirements in subdivision 2 deleted text begin or 3deleted text end must submit
a new waiver application under paragraph (a) and must also submit evidence of steps the
carrier took to address the network inadequacy. When the commissioner reviews a waiver
application for a network adequacy requirement which has been waived for the carrier for
the most recent one-year period, the commissioner shall also examine the steps the carrier
took during that one-year period to address network inadequacy, and shall only approve a
subsequent waiver application that satisfies the requirements in paragraph (b), demonstrates
that the carrier took the steps it proposed to address network inadequacy, and explains why
the carrier continues to be unable to satisfy the requirements in subdivision 2 deleted text begin or 3deleted text end .

(e) Application fees collected under this subdivision shall be deposited in the state
government special revenue fund in the state treasury.

Sec. 31.

Minnesota Statutes 2024, section 62K.10, subdivision 6, is amended to read:


Subd. 6.

Referral centers.

deleted text begin Subdivisionsdeleted text end new text begin Subdivisionnew text end 2 deleted text begin and 3deleted text end shall not apply if an enrollee
is referred to a referral center for health care services. A referral center is a medical facility
that provides highly specialized medical care, including but not limited to organ transplants.
A health carrier or preferred provider organization may consider the volume of services
provided annually, case mix, and severity adjusted mortality and morbidity rates in
designating a referral center.

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 62K.10, subdivision 3, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S2477-1

62K.10 GEOGRAPHIC ACCESSIBILITY; PROVIDER NETWORK ADEQUACY.

Subd. 3.

Other health services.

The maximum travel distance or time shall be the lesser of 60 miles or 60 minutes to the nearest provider of specialty physician services, ancillary services, specialized hospital services, and all other health services not listed in subdivision 2.