SF 1184

as introduced - 91st Legislature (2019 - 2020) Posted on 02/14/2019 02:54pm

A bill for an act
relating to human services; requiring the commissioner of human services to
implement a program to obtain discounted prescription drugs through Canadian
pharmacies; establishing a website for ordering prescription drugs; providing state
and local employee health plans, state health care programs, and health plan
companies access to discounted prescription drugs; 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 [256.952] PRESCRIPTION DRUG REIMPORTATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of human services shall develop a
program to make discounted prescription drugs reimported from Canada available to
Minnesotans. The commissioner shall implement the program by July 1, 2020.
new text end

new text begin Subd. 2. new text end

new text begin Price negotiation; contracts. new text end

new text begin (a) The commissioner shall negotiate prescription
drug prices with Canadian pharmacies licensed under section 151.19, subdivision 1, and
shall contract with the pharmacies to make these prices available to eligible entities. The
commissioner shall require pharmacies, as a condition of contract, to verify:
new text end

new text begin (1) the business location;
new text end

new text begin (2) licensure by a Canadian province;
new text end

new text begin (3) that licensed pharmacists are filling prescriptions; and
new text end

new text begin (4) the prescription drugs being delivered are supplied by the pharmacy.
new text end

new text begin (b) The commissioner shall exclude from the reimportation program those prescription
drugs for which:
new text end

new text begin (1) the commissioner has determined that significant savings, relative to prices paid by
Minnesota purchasers, cannot be obtained after accounting for administrative and shipping
costs;
new text end

new text begin (2) the commissioner has quality concerns, including concerns related to preserving drug
quality throughout the mail-order delivery process; or
new text end

new text begin (3) approval has not been received from the United States Food and Drug Administration.
new text end

new text begin (c) In setting the price of a prescription drug for purchase on the program website, the
commissioner may add an assessment sufficient to cover the costs to the agency of
administering the program and to pay back the agency for start-up expenses over a six-year
period, not to exceed $....... per prescription. Contracts with Canadian pharmacies must
require the pharmacy to pay to the commissioner, on a monthly basis, an amount equal to
the total amount of the assessment fees collected by the pharmacy through orders using the
program website.
new text end

new text begin (d) The commissioner may enter into an agreement with a pharmacy benefit manager
to negotiate prices and administer contracts with Canadian pharmacies.
new text end

new text begin Subd. 3. new text end

new text begin Eligible entities. new text end

new text begin The following entities are eligible to purchase prescription
drugs under the program:
new text end

new text begin (1) state and local government employee health care programs established under sections
43A.23 and 43A.316;
new text end

new text begin (2) state health care programs administered by the commissioner under chapters 256B
and 256L;
new text end

new text begin (3) health plan companies as defined under section 62Q.01, subdivision 4; and
new text end

new text begin (4) residents of Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Website. new text end

new text begin The commissioner shall establish a website, or modify an existing
website, to allow eligible entities to purchase prescription drugs from Canadian pharmacies
at the price negotiated by the commissioner, plus any assessment for agency administrative
costs. The website must allow enrollees of eligible entities to have prescription drugs
delivered to a participating Minnesota pharmacy.
new text end

new text begin Subd. 5. new text end

new text begin Participating pharmacies; administrative and counseling fee. new text end

new text begin A Minnesota
pharmacy may register with the commissioner to participate in the program. A participating
pharmacy must receive and store prescription drugs delivered by Canadian pharmacies,
notify enrollees of the arrival of these prescription drugs, and provide drug counseling at
the time a prescription drug is dispensed. A participating pharmacy may charge an enrollee
a fee not to exceed $....... per prescription to cover the pharmacy's administrative costs and
the cost of providing drug counseling.
new text end

new text begin Subd. 6. new text end

new text begin State and local government enrollees. new text end

new text begin State and local government employee
health care programs established under sections 43A.23 and 43A.316 shall give enrollees
the option of purchasing prescription drugs through the program's website. State and local
government employee health care programs shall exempt prescription drugs ordered through
the website from any applicable enrollee co-payments.
new text end

new text begin Subd. 7. new text end

new text begin State health care programs. new text end

new text begin The medical assistance and MinnesotaCare
programs shall give enrollees the option of purchasing prescription drugs through the
program's website. The commissioner shall exempt prescriptions ordered through the website
from any applicable enrollee co-payments.
new text end

new text begin Subd. 8. new text end

new text begin Health plan companies. new text end

new text begin A health plan company, as defined under section
62Q.01, subdivision 4, must participate in the program for all health plans it offers. A health
plan company must give enrollees the option of purchasing prescription drugs through the
program's website but cannot require enrollees to participate. The health plan company must
pass on all savings resulting from participating in the program to enrollees by reducing or
eliminating prescription drug co-payments and shall pass on any remaining savings to
purchasers in the form of reduced premiums.
new text end

new text begin Subd. 9. new text end

new text begin Multistate agreements. new text end

new text begin The commissioner may enter into agreements with
other states to jointly negotiate prescription drug prices with Canadian pharmacies and
jointly administer a multistate prescription drug reimportation program.
new text end

new text begin Subd. 10. new text end

new text begin MinnesotaCare tax. new text end

new text begin Prescription drugs reimported under this section are
subject to any tax imposed under section 295.52.
new text end

new text begin Subd. 11. new text end

new text begin Implementation plan. new text end

new text begin The commissioner shall develop an implementation
plan for the prescription drug reimportation program, and shall present this plan and any
necessary draft legislation to the legislature by December 15, 2019. The implementation
plan must:
new text end

new text begin (1) establish a process to identify the prescription drugs for which the commissioner
will negotiate prices;
new text end

new text begin (2) set criteria for determining when price savings are significant;
new text end

new text begin (3) set the amount of each prescription assessment at a level that covers ongoing agency
administrative costs and allows the general fund appropriation to be paid back over a six-year
period;
new text end

new text begin (4) propose procedures to ensure the quality of the prescription drugs imported;
new text end

new text begin (5) evaluate and address any data privacy concerns; and
new text end

new text begin (6) recommend any program procedures and modifications necessary to effectively
implement the program.
new text end