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Minnesota Legislature

Office of the Revisor of Statutes

SF 366

as introduced - 91st Legislature (2019 - 2020) Posted on 01/22/2019 03:54pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to health care; requiring the reporting of the cost of prescription drugs that
are used to treat diabetes; proposing coding for new law in Minnesota Statutes,
chapter 62J.

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

Section 1.

new text begin [62J.84] DIABETES DRUG COST TRANSPARENCY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Manufacturer" means any manufacturer that is required to be licensed under section
151.252.
new text end

new text begin (c) "Pharmacy" has the meaning provided in section 151.01, subdivision 2.
new text end

new text begin (d) "Pharmacy benefit manager" has the meaning provided in section 151.71, subdivision
1.
new text end

new text begin (e) "Wholesale acquisition cost" means the manufacturer's list price for a prescription
drug to wholesalers or direct purchasers in the United States, not including any discounts,
rebates, or reductions in price for the most recent month for which information is available,
as reported in wholesale price guides or other publications of drug pricing data.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner's duties. new text end

new text begin (a) By February 1 of each year beginning February
1, 2020, the commissioner shall compile a list of prescription drugs that the commissioner
determines to be essential for treating diabetes in Minnesota, including all forms of insulin
and biguanides marketed for sale in Minnesota and the wholesale acquisition cost of each
drug on the list.
new text end

new text begin (b) By March 1 of each year beginning March 1, 2020, the commissioner shall compile
a list using the list described in paragraph (a) of drugs that have been subject to an increase
in the wholesale acquisition cost of a percentage equal to or greater than:
new text end

new text begin (1) the percentage increase in the Consumer Price Index Medical Care Component during
the immediately preceding calendar year; or
new text end

new text begin (2) twice the percentage increase in the Consumer Price Index Medical Care Component
during the immediately preceding two calendar years.
new text end

new text begin Subd. 3. new text end

new text begin Manufacturer's duties. new text end

new text begin (a) By April 1 of each year beginning April 1, 2020,
the manufacturer of each prescription drug included in the most current list compiled by
the commissioner under subdivision 2, paragraph (a), shall prepare and submit to the
commissioner in a format prescribed by the commissioner, a report that includes the following
for each drug listed:
new text end

new text begin (1) the costs of producing the drug, including the total administrative expenditures
relating to the drug, including marketing and advertising costs;
new text end

new text begin (2) the total amount of financial assistance that the manufacturer has provided through
any patient prescription assistance program;
new text end

new text begin (3) the cost associated with coupons provided directly to consumers and for programs
to assist consumers in paying co-payments, and the cost to the manufacturer attributable to
the redemption of those coupons and the use of those programs;
new text end

new text begin (4) the aggregate amount of all rebates that the manufacturer has provided to pharmacy
benefit managers for sales of the drug within Minnesota; and
new text end

new text begin (5) any additional information deemed necessary by the commissioner for the purpose
of analyzing the cost of drugs that are included in the list described in subdivision 2,
paragraph (a).
new text end

new text begin (b) By April 1 of each year beginning April 1, 2020, for each drug that is included in
the list compiled by the commissioner under subdivision 2, paragraph (b), the manufacturer
shall submit to the commissioner a report describing the reasons for the increase in the
wholesale acquisition cost of the drug listed. The report must include:
new text end

new text begin (1) a list of each factor that has contributed to the increase;
new text end

new text begin (2) the percentage of the total increase that is attributable to each factor;
new text end

new text begin (3) an explanation of the role of each factor in the increase; and
new text end

new text begin (4) any additional information deemed necessary by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Pharmacy benefits manager duties. new text end

new text begin (a) By May 1 of each year beginning
May 1, 2020, each pharmacy benefits manager shall submit to the commissioner a report
that includes:
new text end

new text begin (1) the total amount of rebates that the pharmacy benefits manager negotiated with
manufacturers during the preceding calendar year for prescription drugs included in the list
compiled by the commissioner under subdivision 2, paragraph (a);
new text end

new text begin (2) the total amount of all rebates under clause (1) that were retained by the pharmacy
benefits manager; and
new text end

new text begin (3) the total amount of all rebates under clause (1) that were negotiated for purchases
of drugs for use by:
new text end

new text begin (i) recipients of Medicare;
new text end

new text begin (ii) recipients of medical assistance;
new text end

new text begin (iii) persons covered by third-party payers that are governmental entities that are not
included in item (i) or (ii);
new text end

new text begin (iv) persons covered by third parties that are not governmental entities; and
new text end

new text begin (v) persons covered by a health plan described under paragraph (b) if the health plan
requires the pharmacy benefits manager to comply.
new text end

new text begin (b) Paragraph (a) does not apply to the coverage of prescription drugs provided under
a health plan subject to the Employee Retirement Income Security Act of 1974 or any
information related to that coverage unless the health plan requires the pharmacy benefits
manager that manages the prescription drug coverage for the health plan to comply with
the requirements of paragraph (a).
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin (a) By June 1 of each year beginning June 1, 2020, the commissioner
shall analyze the information submitted under subdivisions 2, 3, and 4 and submit a report
to the legislature on the price of prescription drugs that appear on the most current lists
pursuant to subdivision 2, the reasons for any increases in those prices, and the effect of
those prices on overall spending on prescription drugs in Minnesota. The commissioner
may include recommendations on how to lower the cost of drugs used for the treatment of
diabetes while maintaining access to the drugs.
new text end

new text begin (b) The commissioner shall make the report described in paragraph (a) available to the
public.
new text end