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SF 4076

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/17/2022 10:42am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to health; allowing the commissioner of human services to enter into
value-based purchasing arrangements with drug manufacturers; amending
Minnesota Statutes 2020, section 256B.0625, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2020, section 256B.0625, is amended by adding a subdivision
to read:


new text begin Subd. 13k. new text end

new text begin Value-based purchasing arrangements. new text end

new text begin (a) The commissioner may enter
into a value-based purchasing arrangement for the medical assistance and MinnesotaCare
programs by written agreement with a drug manufacturer based on agreed upon metrics to
which the commissioner and the manufacturer agree in writing. The commissioner may
enter into a contract with a vendor for the purpose of participating in a value-based purchasing
arrangement. A value-based purchasing arrangement may include a rebate, a discount, a
price reduction, risk-sharing, a reimbursement, a guarantee, shared savings payments,
withholds, a bonus, or any other thing of value.
new text end

new text begin (b) For covered outpatient drugs as defined in section 1927 of the federal Social Security
Act, a value-based purchasing arrangement shall be executed in a separate agreement from
the Medicaid National Drug Rebate Agreement.
new text end

new text begin (c) Nothing in this subdivision requires a drug manufacturer or the commissioner to
enter into an arrangement as described in paragraph (a).
new text end

new text begin (d) Nothing in this subdivision shall be construed to alter or modify medical assistance
coverage requirements for covered outpatient drugs under section 1927 of the federal Social
Security Act.
new text end

new text begin (e) If the commissioner determines that a state plan amendment is necessary to implement
a value-based purchasing arrangement, the commissioner shall submit the amendment to
the Centers for Medicare and Medicaid Services and delay implementation until the
amendment is approved. The commissioner may request proposals from drug manufacturers
for value-based purchasing arrangements while a state plan amendment is being reviewed
by the Centers for Medicare and Medicaid Services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end