SF 14

as introduced - 91st Legislature, 2019 1st Special Session (2019 - 2020) Posted on 05/29/2019 10:02am

A bill for an act
relating to health; establishing an insulin assistance program; proposing coding
for new law in Minnesota Statutes, chapters 151; 256.

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

Section 1.

new text begin [151.254] INSULIN REGISTRATION FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

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

new text begin (b) "Manufacturer" means a manufacturer licensed under section 151.252 engaged in
the manufacturing of insulin.
new text end

new text begin (c) "Wholesaler" means a wholesale drug distributor licensed under section 151.47 and
engaged in the wholesale drug distribution of insulin.
new text end

new text begin Subd. 2. new text end

new text begin Reporting requirements. new text end

new text begin (a) Effective March 1 of each year, beginning March
1, 2020, each manufacturer and each wholesaler must report to the Board of Pharmacy every
sale, delivery, or other distribution within or into the state of insulin that was made to any
practitioner, pharmacy, hospital, or other person who is permitted by section 151.37 to
possess insulin for administration or was dispensed to human patients during the previous
calendar year. Reporting must be in a manner specified by the board. If the manufacturer
or wholesaler fails to provide information required under this paragraph on a timely basis,
the board may assess an administrative penalty of $100 per day. This penalty shall not be
considered a form of disciplinary action. Any penalty assessed under this section shall be
deposited in the insulin assistance account established under section 256.938.
new text end

new text begin (b) By March 1 of each year, beginning March 1, 2020, each owner of a pharmacy with
at least one location within this state must report to the board any intracompany delivery
or distribution of insulin into this state, to the extent that those deliveries and distributions
are not reported to the board by a licensed wholesaler owned by, under contract to, or
otherwise operating on behalf of the owner of the pharmacy. Reporting must be in the
manner and format specified by the board for deliveries and distributions that occurred
during the previous calendar year. The report must include the name of the manufacturer
or wholesaler from which the owner of the pharmacy ultimately purchased the insulin and
the amount and date the purchase occurred.
new text end

new text begin Subd. 3. new text end

new text begin Determination of manufacturer's registration fee. new text end

new text begin (a) The board shall annually
assess manufacturers a registration fee that in aggregate equals the total cost of the insulin
assistance program established under section 256.937 for the previous fiscal year, not to
exceed $3,000,000, including any administration costs incurred by the commissioner of
human services or the board in collecting the fee. The board shall determine each
manufacturer's annual insulin registration fee that is prorated and based on the manufacturer's
percentage of the total number of units reported to the board under subdivision 2. For the
first assessment, the commissioner shall estimate the cost of the program for the first fiscal
year and notify the board of the estimated cost by March 1, 2020. The board shall determine
each manufacturer's initial registration fee based on the estimated cost.
new text end

new text begin (b) By April 1 of each year, beginning April 1, 2020, the board shall notify each
manufacturer of the annual amount of the manufacturer's insulin registration fee to be paid
in accordance with section 151.252, subdivision 1, paragraph (b).
new text end

new text begin (c) A manufacturer may dispute the fee assessed under this section as determined by the
board no later than 30 days after the date of notification. However, the manufacturer must
still remit the registration fee required by section 151.252, subdivision 1, paragraph (b).
The dispute must be filed with the board in the manner and using the forms specified by
the board. A manufacturer must submit, with the required forms, data satisfactory to the
board that demonstrates that the fee was incorrect or otherwise unwarranted. The board
must make a decision concerning a dispute no later than 60 days after receiving the required
dispute forms. If the board determines that the manufacturer has satisfactorily demonstrated
that the original fee was incorrect, the board must: (1) adjust the manufacturer's fee; (2)
adjust the manufacturer's fee due the next year by the amount in excess of the correct fee
that should have been paid; or (3) refund the amount paid in error.
new text end

Sec. 2.

new text begin [256.937] INSULIN ASSISTANCE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner of human services shall implement
an insulin assistance program by July 1, 2020. Under the program, the commissioner shall:
new text end

new text begin (1) pay participating pharmacies for insulin that is dispensed by a participating pharmacy
to an eligible individual subject to a valid prescription;
new text end

new text begin (2) maintain an up-to-date list of eligible individuals and make the list available to
participating pharmacies; and
new text end

new text begin (3) ensure pharmacy participation in the program in all areas of the state and maintain
an up-to-date list of participating pharmacies on the department's website.
new text end

new text begin (b) The commissioner may contract with a private entity or enter into an interagency
agreement with another state agency to implement this program.
new text end

new text begin Subd. 2. new text end

new text begin Eligible individual. new text end

new text begin (a) To be eligible for the insulin assistance program, an
individual must submit to the commissioner an application form that is signed by the
individual. Eligibility for the insulin assistance program is subject to the limits of available
funding. To be eligible, an individual must:
new text end

new text begin (1) be a resident of Minnesota;
new text end

new text begin (2) not be eligible for Medicare, medical assistance, or MinnesotaCare;
new text end

new text begin (3) have a family income that is equal to or less than 400 percent of the federal poverty
guidelines; and
new text end

new text begin (4) be uninsured or have no prescription drug coverage.
new text end

new text begin (b) The commissioner shall develop an application form and make the form available
to pharmacies, health care providers, and to individuals on the department's website. An
applicant must include their income and insurance status information with the application.
The commissioner shall require the applicant to submit additional information to verify
eligibility if deemed necessary by the commissioner.
new text end

new text begin (c) Upon receipt of a completed application and any additional information requested
by the commissioner, the commissioner shall determine eligibility to the program. Once
the individual has been determined eligible, the individual shall be issued an identification
card. The card shall be valid for 30 days from the date of issuance and may be used at any
participating pharmacy. An individual is not eligible for renewal until 12 months from the
card's expiration date, at which time the individual must submit a new application form and
meet the qualifications in paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Pharmacy participation. new text end

new text begin (a) Pharmacy participation in the program is voluntary.
In order to participate, a pharmacy must register with the commissioner and agree to
reimbursement and other contract terms. A pharmacy may withdraw from participation at
any time by providing written notice to the commissioner.
new text end

new text begin (b) A pharmacy shall dispense insulin to eligible individuals who present a valid
prescription and an identification card.
new text end

new text begin (c) Eligible individuals are responsible for paying an insulin co-payment to the
participating pharmacy that is equal to the prescription co-payment required under section
256L.03, subdivision 5.
new text end

new text begin (d) Notwithstanding paragraph (c), if an eligible individual has coverage through an
individual or group health plan, the pharmacy must process the insulin in accordance with
the individual's health plan.
new text end

Sec. 3.

new text begin [256.938] INSULIN ASSISTANCE ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The insulin assistance account is established in the special
revenue fund in the state treasury. The fees collected by the Board of Pharmacy under section
151.252, subdivision 1, paragraph (b), shall be deposited into the account.
new text end

new text begin Subd. 2. new text end

new text begin Use of account funds. new text end

new text begin For fiscal year 2021 and subsequent fiscal years, money
in the insulin assistance account is appropriated to the commissioner of human services to
fund the insulin assistance program established under section 256.937.
new text end