This bill mandates the commissioner of human services to select a state pharmacy benefit manager through a competitive procurement process and to enter into a master contract with the chosen manager. It amends Minnesota Statutes 2024, section 256B.69, subdivision 6d, to include new provisions regarding the management of prescription drug costs and utilization, including the requirement for managed care plans to maintain an open drug formulary and the use of preferred drug lists and prior authorization. The bill also introduces a new section, 256B.696, which outlines the definitions, procurement process, drug coverage responsibilities, and disclosure requirements for the state pharmacy benefit manager.

Key provisions include the requirement for the state pharmacy benefit manager to process all pharmacy claims under the managed care delivery system and to provide quarterly reports to the commissioner detailing negotiated drug prices, rebates, and savings passed on to enrollees. The commissioner is granted authority to adopt a preferred drug list, negotiate prices, and manage drug formularies. Additionally, the bill emphasizes transparency in pricing and requires the commissioner to seek federal approval for implementation. The effective date for these changes is set for January 1, 2027, or upon federal approval, whichever occurs later.

Statutes affected:
Introduction: 256B.69