SF3055 (Legislative Session 94 (2025-2026))
Technology platform, pharmacy benefit manager, and data protection in vendor contracts provisions modifications
Related bill: HF2714
AI Generated Summary
Purpose of the Bill
This bill aims to modify how Minnesota procures pharmacy benefit management services. It intends to enhance transparency and competition by utilizing technology in the selection process and ensuring data protection in contracts.
Main Provisions
Pharmacy Benefit Manager (PBM) Procurement: The bill mandates a reverse auction process to select a pharmacy benefit manager to manage the state's prescription drug benefits. The reverse auction involves competitive bidding to help secure efficient and cost-effective services.
Technology Platform: The bill requires the use of a technology platform to facilitate the reverse auction. This platform must:
- Host online reverse auctions.
- Automate the evaluation of PBM proposals based on uniform drug pricing data.
- Generate detailed reports comparing bids.
Data Protections: The bill insists on stringent data protection measures in agreements with technology vendors, including prohibitions on unauthorized data use or sale and strict controls on data access.
Significant Changes to Existing Law
Separation of Services: The bill allows the commissioner to choose multiple vendors for separate components of pharmacy and prescription drug benefit management, rather than employing a single, full-service provider.
Reverse Auction Methodology: Specifies the use of a reverse auction as a standard method for procuring PBM contracts. This represents a shift to more dynamic, market-driven methodologies for vendor selection.
Vendor Restrictions: Prohibits awarding technology platform contracts to PBMs or their affiliates, aiming to ensure independent and unbiased management of the auction process.
Relevant Terms
- Pharmacy Benefit Manager (PBM)
- Reverse Auction
- Technology Platform
- Data Protection
- Prescription Drug Benefits
- Competitive Bidding
Bill text versions
- Introduction PDF file
Past committee meetings
- State and Local Government on: April 01, 2025 12:30
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 27, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 27, 2025 | Senate | Floor | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [
"Includes the requirement for reverse auctions in procuring pharmacy benefit managers."
],
"removed": [],
"summary": "This bill amends requirements for the procurement of a pharmacy benefit manager under Minnesota Statutes section 43A.231, subdivision 3.",
"modified": [
"Clarifies procurement procedures and data access requirements for commissioners and pharmacy benefit managers."
]
},
"citation": "43A.231",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
"Specifies new capabilities and standards for technology platforms used in reverse auctions."
],
"removed": [],
"summary": "This legislation modifies the technology platform procurement specifications for pharmacy benefit manager contracts under Minnesota Statutes section 43A.231, subdivision 4.",
"modified": [
"Details the competitive bidding process for technology platform vendors and data security requirements."
]
},
"citation": "43A.231",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [
"Stipulates privacy protections and prohibitions on unauthorized data access."
],
"removed": [],
"summary": "This bill revises data protection requirements for vendor contracts under Minnesota Statutes section 43A.231, subdivision 6.",
"modified": [
"Adjusts agreements for data handling between the commissioner and technology platform vendors."
]
},
"citation": "43A.231",
"subdivision": "subdivision 6"
}
]