SF 22

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; providing for prescription
drug bulk purchasing; proposing coding for new law in
Minnesota Statutes, chapter 256.

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

Section 1.

new text begin [256.9551] PRESCRIPTION DRUG BULK PURCHASING
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Intrastate prescription drug bulk
purchasing program. new text end

new text begin The commissioner of human services is
directed to establish and administer an intrastate prescription
drug bulk purchasing program in order to try to save money for
the state, its agencies, and local governments in regard to the
cost of the prescription drugs they purchase. Under the
program, the Department of Human Services will consolidate drug
purchasing by the state prescription drug program, state
hospitals and other health care facilities, state educational
facilities, the State Health Plan, and other state and local
government entities and programs that purchase significant
quantities of prescription drugs and wish to participate in the
intrastate bulk purchasing program. The Department of
Administration will negotiate the prices of the prescription
drugs purchased under this program unless the prices of some or
all of the purchased drugs are negotiated by an agent of an
interstate prescription drug bulk purchasing program described
in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Interstate prescription drug bulk purchasing
program. new text end

new text begin The commissioner of human services is directed to
establish or join an existing interstate prescription drug bulk
purchasing program with other interested states. The program
will select an agent to negotiate prices for the states in the
program. The department shall administer the state's
participation in the program.
new text end

new text begin Subd. 3. new text end

new text begin Negotiation of canadian or european prescription
drug prices. new text end

new text begin The commissioner of human services shall request
the Department of Administration to negotiate with
state-approved Canadian or European pharmacies or wholesalers
the prices to be charged to Minnesota residents who purchase
their prescription drugs from Canada or Europe pursuant to the
state's prescription drug importation program. The commissioner
shall also determine whether it would save money for the state's
intrastate prescription drug bulk purchasing program to purchase
some or all of the prescription drugs from Canada or Europe and
will make such purchases if it would result in significant
savings. The commissioner shall also encourage the members of
the state's interstate prescription drug bulk purchasing program
to purchase some or all of the necessary prescription drugs in
Canada or Europe if it would result in significant savings.
new text end

new text begin Subd. 4. new text end

new text begin Public/private intrastate prescription drug bulk
purchasing alliance. new text end

new text begin The commissioner shall establish and
administer a public/private intrastate prescription drug bulk
purchasing alliance under which the state and interested private
entities can consolidate their drug purchasing to save money.
The participation of private entities in this alliance is
voluntary. The Department of Administration shall negotiate the
prices of prescription drugs purchased through the alliance.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner discretion. new text end

new text begin The commissioner of
human services is not required to establish or administer any of
the bulk purchasing programs in subdivisions 1 to 4 if the
commissioner determines that any such program would not result
in significant savings to the state. The commissioner shall not
include the state Medicaid program, MinnesotaCare program, or
Department of Corrections in the bulk purchasing programs in
subdivisions 1 to 4. These programs may later be included in
any or all of the bulk purchasing programs in subdivisions 1 to
4 if the commissioner deems those bulk purchasing programs to be
beneficial to the state and that the inclusion of the state
Medicaid program, MinnesotaCare, and the Department of
Corrections in a bulk purchasing program would result in savings
to the state.
new text end

new text begin Subd. 6. new text end

new text begin Pharmacy participation. new text end

new text begin Any pharmaceuticals
purchased by state or local government entities or Minnesota
consumers pursuant to the bulk purchasing programs identified in
subdivisions 1 to 4 shall be distributed through Minnesota
pharmacies, unless the commissioner or the state or local
government entities select an alternate distribution system.
new text end