Bill > SF1877

This bill requires pharmacy benefit managers (PBMs) and health carriers to use prescription drug rebates and other compensation to directly benefit covered persons by reducing their out-of-pocket costs at the point of sale. Specifically, PBMs and health carriers must remit all compensation received from drug manufacturers to the covered person for a particular prescription drug, effectively lowering the individual's cost-sharing obligation. If the person's cost-sharing is already low, the PBM or health carrier can retain the compensation but must apply it to offset future premiums or costs for covered persons. The bill defines "compensation" broadly to include rebates, discounts, credits, fees, and other financial benefits. Starting March 1, 2026, these entities must file annual reports with the commissioner demonstrating compliance. The law includes an exception for prescriptions where the cost-sharing is $25 or less for generic drugs and $55 or less for brand-name drugs. The bill also requires state employee group insurance program contracts to ensure PBM compliance. This legislation aims to increase transparency and provide more direct financial benefits to individuals purchasing prescription medications by redirecting manufacturer compensation.

Business and Industry, Health and Social Services

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1877&ssn=0&y=2025