This bill establishes a framework for regulating the prices of certain prescription drugs in Minnesota as part of the Medicare Drug Price Negotiation Program. It introduces a new section in the Minnesota Statutes, chapter 62Q, titled "Maximum Fair Price for Certain Prescription Drugs." The bill defines key terms such as "manufacturer," "maximum fair price," "NADAC," "pharmacy benefit manager," and "referenced drug." It prohibits manufacturers from charging more than the maximum fair price set by the U.S. Department of Health and Human Services for referenced drugs and mandates that health plans and pharmacy benefit managers reimburse pharmacies at no less than the maximum fair price or the NADAC, whichever is greater.

Additionally, the bill includes provisions to prevent manufacturers from withdrawing referenced drugs from sale to evade price regulations, requiring them to notify the commissioner of health 180 days prior to any withdrawal. It imposes penalties on manufacturers who violate this requirement, with fines set at either $100,000 or the total annual savings for the referenced drug, as determined by the Prescription Drug Affordability Board. The new regulations are set to take effect on January 1, 2027.