1.1 	A bill for an act
1.2 	relating to health care; modifying provisions governing hospital reimbursement 
1.3 	for certain biological products to treat rare diseases;amending Minnesota Statutes 
1.4 	2024, section 256.969, subdivision 32.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2024, section 256.969, subdivision 32, is amended to read:
1.7 		Subd. 32.Biological products for cell and gene therapy. (a) Effective July 1, 2025, 
1.8 	and upon necessary federal approval of documentation required to enter into a value-based 
1.9 	arrangement under section 256B.0625, subdivision 13k, The commissioner may shall provide 
1.10 	separate reimbursement to hospitals for biological products provided in the inpatient hospital 
1.11 	setting as part of cell or gene therapy to treat rare diseases, as defined in United States Code, 
1.12 	title 21, section 360bb, if the drug manufacturer enters into a value-based arrangement with 
1.13 	the commissioner.
1.14 	(b) The commissioner shall establish the separate reimbursement rate for biological 
1.15 	products provided under paragraph (a) based on the methodology used for drugs administered 
1.16 	in an outpatient setting under section 256B.0625, subdivision 13e, paragraph (e). Hospitals 
1.17 	must be paid the actual acquisition cost for biological products provided under paragraph 
1.18 	(a).