This bill, S.F. No. 2176, was introduced in the Minnesota Senate and referred to the Commerce and Consumer Protection Committee. The bill proposes adding a new law to Minnesota Statutes, chapter 62A, requiring health carriers to pass on rebates and discounts received for prescription drugs directly to enrollees at the point of sale.

Key Provisions:

1. Definitions (Subd. 1):

   • Defined Cost-Sharing: Deductibles or coinsurance amounts for prescription drugs under a health plan.
   • Health Carrier: Includes insurance companies and pharmacy benefit managers (PBMs).
   • Price Protection Rebate: Discounts applied when a drug’s wholesale price increases beyond a set threshold.
   • Rebate: Negotiated price concessions from manufacturers, pharmacies, or other entities for prescription drugs.

2. Cost-Sharing Reductions (Subd. 2):

   • Health carriers must apply 100% of rebates and discounts at the point of sale, reducing enrollees' out-of-pocket costs for prescription medications.
   • Health carriers can choose to reduce cost-sharing even further if they wish.

3. Confidentiality of Rebates (Subd. 3):

   • Health carriers and their agents cannot disclose the exact details of rebates or price concessions on a per-product, therapeutic class, or manufacturer-specific basis.
   • Rebate information is classified as a trade secret and is not a public record.
   • Health carriers must ensure that any third-party vendors handling this information maintain these confidentiality rules.

4. Enforcement (Subd. 4):

   • Health carriers or PBMs that fail to comply could face penalties, including civil fines, suspension, or license revocation.

Summary:

The bill aims to lower prescription drug costs for consumers by ensuring that rebates and discounts obtained by health plans are passed directly to patients in the form of reduced cost-sharing at the point of sale. It also establishes strict confidentiality requirements for rebate data and penalties for violations.