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 and requires health plans and pharmacy benefit managers to reimburse pharmacies at or above this price, ensuring transparency in financial dealings related to these drugs.

Additionally, the bill includes provisions to prevent manufacturers from withdrawing referenced drugs from sale to evade price regulations, mandating a 180-day notice to the commissioner of health 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 drug, as determined by the Prescription Drug Affordability Board. The new regulations are set to take effect on January 1, 2027.