SF 2239

as introduced - 89th Legislature (2015 - 2016) Posted on 04/01/2016 09:28am

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 Web site 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, 2017.
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) business location;
new text end

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

new text begin (3) 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 Web
site, 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 Web site.
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; and
new text end

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

new text begin Subd. 4. new text end

new text begin Web site. new text end

new text begin The commissioner shall establish a Web site, or modify an
existing Web site, 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 Web site 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 Web site.
State and local government employee health care programs shall exempt prescription
drugs ordered through the Web site 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 Web site. The commissioner shall exempt prescriptions ordered through the
Web site 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 of the health plans it offers.
A health plan company must give enrollees the option of purchasing prescription drugs
through the program's Web site 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, 2016.
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