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SF 3454

as introduced - 90th Legislature (2017 - 2018) Posted on 03/22/2018 10:22am

KEY: stricken = removed, old language. underscored = added, new language.

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Current Version - as introduced

A bill for an act
relating to health; providing establishment of a prescription drug purchasing
program; specifying program authority and eligibility requirements; amending
Minnesota Statutes 2016, sections 16C.105; 471.59, subdivision 1; proposing
coding for new law in Minnesota Statutes, chapter 16B.

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

Section 1.

[16B.876] PRESCRIPTION DRUG PURCHASING PROGRAM.

Subdivision 1.

Establishment of program.

The commissioner of administration shall
administer and oversee a Minnesota prescription drug purchasing program.

Subd. 2.

Purpose of program.

The purpose of the Minnesota prescription drug
purchasing program is to:

(1) make prescription drugs available at the lowest possible cost to its participants;

(2) promote health through the purchase and provision of discount prescription drugs
and coordination of comprehensive prescription benefit services for program participants;
and

(3) maintain a list of prescription drugs recommended as the most effective prescription
drugs available at the best possible prices.

Subd. 3.

Program authority.

In order to accomplish the purpose of the Minnesota
prescription drug purchasing program, the commissioner shall have the authority to:

(1) adopt or develop a preferred drug list;

(2) engage in price negotiations with prescription drug manufacturers, wholesalers, or
group purchasing organizations in order to obtain price discounts and rebates for prescription
drugs for program participants;

(3) contract with a prescription drug claims processor to adjudicate pharmacy claims
and transmit program prices and other information to pharmacies;

(4) contract with wholesalers and pharmacies for the distribution of prescription drugs
to participants;

(5) develop a system for allocating and distributing operational costs of the program and
rebates obtained to program participants;

(6) cooperate with government or nonprofit entities in the bulk purchase of prescription
drugs;

(7) enroll eligible participants in the program and issue membership information to be
used by participants to obtain drug discounts and rebates under the program;

(8) inform Minnesota consumers about eligibility to participate in the program; and

(9) contract with one or more entities to perform any of the functions described in clauses
(1) to (8), including:

(i) pharmacy benefit managers;

(ii) pharmacy networks;

(iii) wholesalers; and

(iv) group purchasing organizations that offer discount purchasing programs, provided
that those organizations meet the criteria of the Nonprofit Institutions Act, United States
Code, title 15, section 13c, or that are exempt under the Robinson-Patman Act, United States
Code, title 15, section 13. [2003 c.714 ?1; 2007 c.2 ?1; 2007 c.67 ?1; 2007 c.697 ?17; 2009
c.263 ?2; 2009 c.466 ?1; 2009 c.595 ?291; 2011 c.720 ?136; 2013 c.14 ?6; 2015 c.551 ?1];

Subd. 4.

Pharmacies.

The commissioner shall set the terms and conditions for pharmacies
to participate in the program. Any pharmacy licensed under chapter 151 willing to accept
the terms and conditions shall be enrolled in the program.

Subd. 5.

Participation.

The Minnesota prescription drug purchasing program is available
to all residents of the state. The commissioner shall issue to all participants membership
information necessary for proper claims adjudication or transmission of price data in
prescription drug purchases.

Subd. 6.

Fees.

The Minnesota prescription drug purchasing program may charge its
participants a fee to participate in the program.

Subd. 7.

Resale prohibition.

Except as permitted by subdivision 3, the Minnesota
prescription drug purchasing program may not establish a wholesale or retail drug distribution
or dispensing system.

Subd. 8.

Rules.

The commissioner shall adopt rules necessary to implement this section.

Sec. 2.

Minnesota Statutes 2016, section 16C.105, is amended to read:


16C.105 COOPERATIVES AUTHORIZED.

The following entities are authorized to enter into cooperative purchasing agreements
with the commissioner in accordance with section 16C.03, subdivision 10:

(1) one or more other states or governmental units, as described in section 471.59,
subdivision 1;

(2) entities defined in section 16B.2975, subdivision 1;

(3) a registered combined charitable organization and its affiliated agencies as defined
by section 43A.50;

(4) a charitable organization defined in section 309.50, subdivision 4, that is also a
recipient of a state grant or contract;

(5) a nonprofit community health clinic defined in section 145.9268; and

(6) a drug discount program created under section 16B.876; and

(6) (7) health care facilities that are required to provide indigent care, or any entity
recognized by another state's statutes as authorized to use that state's commodity or service
contracts.

Sec. 3.

Minnesota Statutes 2016, section 471.59, subdivision 1, is amended to read:


Subdivision 1.

Agreement.

Two or more governmental units, by agreement entered into
through action of their governing bodies, may jointly or cooperatively exercise any power
common to the contracting parties or any similar powers, including those which are the
same except for the territorial limits within which they may be exercised. The agreement
may provide for the exercise of such powers by one or more of the participating governmental
units on behalf of the other participating units. The term "governmental unit" as used in this
section includes every city, county, town, school district, independent nonprofit firefighting
corporation, other political subdivision of this or another state, another state, federally
recognized Indian tribe, the University of Minnesota, the Minnesota Historical Society,
nonprofit hospitals licensed under sections 144.50 to 144.56, rehabilitation facilities and
extended employment providers that are certified by the commissioner of employment and
economic development, day and supported employment services licensed under chapter
245D, a drug discount program created pursuant to section 16B.876, and any agency of the
state of Minnesota or the United States, and includes any instrumentality of a governmental
unit. For the purpose of this section, an instrumentality of a governmental unit means an
instrumentality having independent policy-making and appropriating authority.

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