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 prescription drug management, including the requirement for managed care plans to maintain an open drug formulary and the collection of additional prescription drug rebates. 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 and the need for the commissioner to approve all utilization review limitations and reimbursement rates imposed by managed care plans. The bill emphasizes transparency by requiring the state pharmacy benefit manager to disclose all sources of payment for prescribed drugs and to provide quarterly reports on negotiated prices and savings passed on to enrollees. Additionally, the commissioner is granted authority to develop preferred drug lists and engage in price negotiations to ensure the availability of prescription drugs at the lowest possible cost. The effective date of the new provisions is set for January 1, 2027, or upon federal approval, whichever is later.

Statutes affected:
Introduction: 256B.69