Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF1877 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to health; requiring pharmacy benefit managers and health carriers to use
3	3		1.3 prescription drug rebates and other compensation to benefit covered persons;
4	4		1.4 requiring a report; proposing coding for new law in Minnesota Statutes, chapter
5	5		1.5 62W.
6	6		1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7		1.7 Section 1. [62W.16] RESPONSIBILITY TO USE COMPENSATION FOR BENEFIT
8	8		1.8OF COVERED PERSONS.
9	9		1.9 Subdivision 1.Compensation used to reduce point-of-sale costs.(a) Except as provided
10	10		1.10in paragraph (b), a pharmacy benefit manager or health carrier must remit all compensation
11	11		1.11received from a drug manufacturer related to its prescription drug benefit directly to the
12	12		1.12covered person associated with a particular prescription drug, at the point of sale, to reduce
13	13		1.13the covered person's out-of-pocket cost for that prescription drug.
14	14		1.14 (b) A pharmacy benefit manager or health carrier is not required to remit all compensation
15	15		1.15as required by paragraph (a), if the covered person's cost-sharing obligation for a particular
16	16		1.16drug is less than what the person's out-of-pocket cost for that drug would be after application
17	17		1.17of paragraph (a). All compensation retained by the pharmacy benefit manager or health
18	18		1.18carrier under this paragraph must be applied by that entity in its plan design to offset future
19	19		1.19premiums or costs for covered persons.
20	20		1.20 (c) State employee group insurance program contracts with pharmacy benefit managers,
21	21		1.21including but not limited to contracts under section 43A.231, must require pharmacy benefit
22	22		1.22manager compliance with this section.
23	23		1.23 Subd. 2.Definitions.(a) For purposes of this section, the following definitions apply.
24	24		1Section 1.
25		-	~~S1877-1 1st Engrossment~~~~SF1877~~ REVISOR SGS
	25	+	25-02860 as introduced02/10/25 REVISOR SGS/BM
26	26		SENATE
27	27		STATE OF MINNESOTA
28	28		S.F. No. 1877NINETY-FOURTH SESSION
29	29		(SENATE AUTHORS: MANN)
30	30		OFFICIAL STATUSD-PGDATE
31		-	Introduction and first reading55202/27/2025
32		-	Referred to Commerce and Consumer Protection
33		-	Comm report: To pass as amended and re-refer to Health and Human Services03/13/2025 2.1 (b) "Compensation" means any direct or indirect financial benefit, including but not
	31	+	Introduction and first reading02/27/2025
	32	+	Referred to Health and Human Services 2.1 (b) "Compensation" means any direct or indirect financial benefit, including but not
34	33		2.2limited to rebates, discounts, credits, fees, grants, chargebacks, or other payments or benefits
35	34		2.3of any kind.
36	35		2.4 (c) "Cost-sharing obligation" means a covered person's co-payment or coinsurance for
37	36		2.5a particular prescription drug.
38	37		2.6 Subd. 3.Report on compliance.Beginning March 1, 2026, and each March 1 thereafter,
39	38		2.7a pharmacy benefit manager or health carrier shall file with the commissioner a report, in
40	39		2.8the form and manner specified by the commissioner, demonstrating how the pharmacy
41	40		2.9benefit manager or health carrier has complied with this section.
42		-	2.10 Subd. 4.Exception.This section does not apply to a pharmacy benefit manager or health
43		-	2.11carrier if the covered person's cost-sharing obligation is equal to or less than:
44		-	2.12 (1) $25 for a generic drug; and
45		-	2.13 (2) $55 for a brand name drug.
46		-	2.14 EFFECTIVE DATE.This section is effective January 1, 2026.
	41	+	2.10 EFFECTIVE DATE.This section is effective January 1, 2026.
47	42		2Section 1.
48		-	~~S1877-1 1st Engrossment~~~~SF1877~~ REVISOR SGS
	43	+	25-02860 as introduced02/10/25 REVISOR SGS/BM