The proposed bill seeks to regulate the pricing of generic and off-patent drugs in Minnesota by prohibiting excessive price increases by manufacturers. It defines excessive price hikes as those surpassing certain inflation-adjusted thresholds based on the Consumer Price Index. The bill empowers the Attorney General to take action against manufacturers that violate these regulations and prohibits them from withdrawing drugs from sale to evade compliance. Additionally, it requires manufacturers to maintain a registered agent and office within Minnesota. The legislation also establishes a Prescription Drug Affordability Board and an advisory council to oversee drug cost reviews, ensuring transparency and affordability in prescription drug pricing.

The bill outlines the structure and responsibilities of the Prescription Drug Affordability Advisory Council, which will consist of 18 members appointed by the governor and will meet publicly at least every three months. It mandates public announcements and the availability of materials for these meetings, allowing for public comments and written submissions. The board will review drug prices, identify affordability challenges, and set upper payment limits for excessively priced drugs. Importantly, the bill clarifies that ERISA plans and Medicare Part D plans are not required to comply with the board's decisions but can choose to exceed the established limits. It also amends disciplinary actions for pharmacy sector licensees, increasing civil penalties for violations related to the new regulations and includes an appropriation from the general fund for implementation.

Statutes affected:
Introduction: 151.071
1st Engrossment: 151.071
2nd Engrossment: 151.071
1st Engrossment: 151.071
2nd Engrossment: 151.071