Purpose of the Bill

This bill aims to regulate the use of revenue from prescription drugs obtained through the 340B Drug Pricing Program by healthcare entities in Minnesota. It focuses on ensuring that such revenues are used for charity care purposes and introduces accountability measures through audits and potential enforcement actions.

Main Provisions

• Independent Audits: The bill permits nonprofit public interest organizations to conduct independent audits of 340B covered entities to ensure compliance with existing regulations related to the usage of 340B revenues.

• Mandatory Use of Revenue: It requires these 340B covered entities to allocate 25% of their net revenue from the 340B program specifically towards the provision of charity care. This includes offering free or reduced-cost healthcare services but excludes medical debt write-offs and community service activities.

• Audit Compliance: 340B covered entities are obligated to cooperate with audits by providing necessary data and information. The nonprofit organizations conducting these audits must keep all gathered information confidential and can report findings to legislative committees overseeing health policy and finance.

• Enforcement: The Minnesota Attorney General is granted authority to enforce compliance, in addition to the commissioner, ensuring that 340B covered entities adhere to these requirements.

Significant Changes to Existing Law

• The bill introduces a new requirement for 340B covered entities to allocate a specified percentage of their revenue towards charity care, which was not previously mandated by law.

• The authorization of independent audits by nonprofit public interest organizations is a new measure aimed at increasing transparency and accountability for 340B covered entities.

• It adds enforcement capabilities to the Attorney General, expanding beyond the existing regulatory frameworks.

Relevant Terms

340B Drug Pricing Program, nonprofit public interest organizations, charity care, independent audits, attorney general enforcement, prescription drug revenue, healthcare policy compliance, Minnesota health regulations.