MN HF1711

Pharmacy benefit managers and health carriers must remit all compensation received from drug manufacturers directly to covered persons at point of sale to reduce out-of-pocket prescription drug costs, effective January 1, 2024.

Entities may retain compensation if the covered person's cost-sharing obligation is already less than their out-of-pocket cost would be after applying the rebate; retained compensation must be applied to offset future premiums or costs for covered persons.

State employee group insurance program contracts with pharmacy benefit managers, including contracts under section 43A.231, must require compliance with these provisions.

"Compensation" includes rebates, discounts, credits, fees, grants, chargebacks, and any other direct or indirect financial benefits from drug manufacturers.

Pharmacy benefit managers and health carriers must file annual compliance reports with the commissioner beginning March 1, 2024, and each March 1 thereafter.