Bill > SF1574

This bill establishes a comprehensive framework for managing prescription drug benefits in Minnesota's Medicaid and MinnesotaCare programs by requiring the Commissioner of Human Services to select a single state pharmacy benefit manager (PBM) through a competitive procurement process. The bill mandates that the selected PBM must be transparent about potential conflicts of interest, financial arrangements, and fees, and must disclose detailed information about drug pricing, rebates, and administrative costs. The commissioner will have broad authority to approve or disapprove utilization review limitations, reimbursement rates, and drug coverage strategies, with the primary goals of making prescription drugs available at the lowest possible cost, promoting health through discounted drugs, ensuring proper benefit administration, and increasing transparency in prescription drug pricing. The bill requires the PBM to submit quarterly reports to the commissioner, prohibits the PBM from requiring enrollees to use specific specialty pharmacies, and allows the commissioner to negotiate drug prices directly with manufacturers if needed. The provisions will take effect on January 1, 2027, or upon federal approval, and apply to all managed care plans providing coverage to Medicaid and MinnesotaCare enrollees.

Health and Social Services

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1574&ssn=0&y=2025