Purpose of the Bill

This bill aims to ensure that nonprofit organizations participating in the 340B Drug Pricing Program use a portion of their revenue for charitable healthcare services. Additionally, it seeks to enhance the transparency and accountability of these organizations through independent audits.

Main Provisions

• Independent Audits: The bill permits nonprofit public interest organizations to conduct independent audits of 340B covered entities. These audits are intended to ensure compliance with existing laws regarding the use of revenue obtained through the 340B program.

• Revenue Allocation for Charity Care: The bill mandates that 340B covered entities must use at least 25% of their net revenue from the 340B program to provide charity care. This does not include costs related to medical debt write-offs or community service activities.

• Cooperation with Auditors: 340B covered entities are required to cooperate with audits by providing requested data and documents necessary for completing the audit while maintaining confidentiality of this information.

• Enforcement: The Minnesota Attorney General, alongside the commissioner, is given authority to enforce compliance with these provisions.

Significant Changes

• The bill introduces a requirement for nonprofit organizations benefiting from the 340B program to dedicate a portion of their program revenue explicitly for charity care, which was not previously mandated.
• It adds a provision for independent audits by qualified nonprofit organizations, increasing oversight and accountability.
• The Attorney General is granted new enforcement powers to ensure adherence to these requirements.

Relevant Terms

• 340B Drug Pricing Program
• Nonprofit public interest organization
• Charity care
• Independent audit
• Attorney General enforcement