Minnesota House Bill HF1728

Minnesota 2023-2024 Regular Session

• Introduced: 2/13/23
• Refer: 2/13/23

Caption

Application and renewal fees increased for opiate drug wholesalers, opiate product fee established for opiate drug wholesalers, and sunset for opioid fees eliminated.

Impact

One of the core components of HF1728 is the establishment of the Opiate Epidemic Response Fund, which will support initiatives aimed at addressing opiate misuse and drug addiction in the state. The fees collected from drug wholesalers and manufacturers are intended to bolster the resources available to public health efforts combating the opioid epidemic. Additionally, the annual registration fee for opiate product registration has been set at $250,000 for manufacturers or wholesalers distributing over two million units of opiates, which will likely reduce the number of entities willing to operate in this space but also increase the funding available for state health programs.

Summary

House File 1728 (HF1728) introduces significant changes to the regulation of opiate drug wholesalers in Minnesota. The bill seeks to increase application and renewal fees for opiate drug wholesalers, establishes a new fee structure specifically for certain opiate drug wholesalers, and eliminates the sunset provision for previously established opioid fees. These measures reflect a state-level response to the ongoing opioid crisis by increasing financial contributions from pharmaceutical companies involved in the distribution of opiate medications.

Contention

The increase in fees and the establishment of new financial regulations have produced some contention among industry stakeholders. Some proponents argue that these measures are necessary to provide adequate funding for the ongoing fight against opioid abuse, while critics define the financial burden on wholesalers as excessive and potentially detrimental to the supply chain of essential medications. Furthermore, the bill's structure may lead to increased costs for healthcare providers and patients as wholesalers potentially pass the fees onto consumers.