SF 495

as introduced - 91st Legislature (2019 - 2020) Posted on 05/20/2019 09:34am

A bill for an act
relating to state government; requiring the commissioner of management and
budget 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 151.

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

Section 1.

new text begin [151.75] 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 management and budget 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 of management and budget
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) that prescription drugs being delivered are supplied by the pharmacy.
new text end

new text begin (b) The commissioner of management and budget 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 of management and budget 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's website.
new text end

new text begin (d) The commissioner of management and budget 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 of human services
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 Website. new text end

new text begin The commissioner of management and budget 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 and the Board of Pharmacy to participate in
the program. A participating pharmacy must receive and store prescription drugs delivered
by Canadian pharmacies, notify enrollees of the arrival of the 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 of human services 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) 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 website but must not 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 (b) No co-payment required to be paid by an enrollee for a prescription drug purchased
through the program's website shall be greater than a co-payment required to be paid by the
enrollee under the enrollee's health plan for the same prescription drug not purchased through
the program and shall count toward any applicable deductible under the enrollee's health
plan.
new text end

new text begin Subd. 9. new text end

new text begin Multistate agreements. new text end

new text begin The commissioner of management and budget 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 of management and budget, in
consultation with commissioner of human services and the Board of Pharmacy, 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, 2020. The
implementation plan must:
new text end

new text begin (1) establish a process to identify the prescription drugs for which the commissioner of
management and budget 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 program
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