Pharmacy benefit managers and health carriers required to include lower-cost drugs in their formularies, and formulary structure and formulary tiering for each health plan required to give preference to drug with lowest out-of-pocket cost to patient.
If enacted, HF5469 would result in significant changes to the existing healthcare regulations in Minnesota, particularly affecting how PBMs and health carriers handle the inclusion of drugs in their formularies. The bill mandates that if a brand name drug is available in a formulary, the equivalent lower-cost generic or biosimilar must also be included. This could encourage more competitive pricing among drug manufacturers and could potentially lead to lower overall healthcare costs for patients. Additionally, it prevents insurers from imposing barriers to access, such as prior authorization, for the lowest-cost options.
House Bill 5469 proposes measures to regulate how pharmacy benefit managers (PBMs) and health carriers structure their drug formularies. The core intent of the bill is to ensure that lower-cost drugs—specifically generics and biosimilars—are included in formularies, prioritizing those with lower out-of-pocket costs for patients. This is aimed at making medications more affordable and accessible for consumers, aligning with broader health policy goals of affordability in healthcare.
However, the bill may face opposition from various stakeholders within the healthcare industry. Concerns have been raised regarding how such policies may impact the ability of PBMs to manage formularies effectively and the financial implications for insurance providers. Critics argue that while the intention of lowering out-of-pocket costs is clear, the implementation of such a requirement could lead to unintended consequences, including reduced access to certain medications if manufacturers choose to withdraw products from formularies or if price negotiations become strained.
Furthermore, the provisions of HF5469 are set to take effect on January 1, 2025, giving stakeholders time to adjust to the new regulatory environment. The discussions around this bill also emphasize the broader context of healthcare reform efforts in Minnesota, highlighting a collective move towards prioritizing patient choice and affordability as key components of state health policy in the coming years.