The proposed bill aims to establish fair pricing standards for community pharmacy reimbursements in Minnesota, as outlined in a new section of the Minnesota Statutes, chapter 62J. It mandates that community pharmacies receive total reimbursements for prescription drugs that are no less than the National Average Drug Acquisition Cost (NADAC) or, if unavailable, the Wholesale Acquisition Cost (WAC), along with a professional dispensing fee that is adjusted biennially based on an independent cost-of-dispensing survey. The bill also clarifies that entities participating in the federal 340B program will have their reimbursements determined according to federal and state law, without requiring reimbursement at or above NADAC or WAC.

Additionally, the bill prohibits below-cost reimbursements and negative adjustments for community pharmacies. It sets forth requirements for pharmacy benefit managers (PBMs) and managed care organizations (MCOs) to ensure that community pharmacies are reimbursed at or above the established standards without any reductions. The legislation also emphasizes parity in reimbursement rates between community pharmacies and PBM-owned or affiliated pharmacies, ensuring that the latter cannot receive higher reimbursements for the same drugs under identical conditions. Furthermore, it prohibits any fees or adjustments that would lower the net reimbursement for community pharmacies below the mandated standards.