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 enhance the management of prescription drug costs and utilization, requiring managed care plans to maintain an open drug formulary and allowing for 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 and the necessity for the commissioner to approve all utilization review limitations and reimbursement rates imposed by managed care plans. Additionally, the bill emphasizes transparency by requiring the 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. The bill is set to take effect on January 1, 2027, or upon federal approval, whichever is later.

Statutes affected:
Introduction: 256B.69