WeVote
Log In

Bill

Bill

HF 590

Electronic benefit transfer card use modified.

2025-2026 Regular Session Introduced by Duane Quam

MN law bars manufacturers or distributors from denying or hindering 340B drug purchases or delivery to contract pharmacies, protecting covered entities.

Introduction and first reading, referred to Human Services Finance and Policy
#humanservicesandhumanservicesdepartment
0
WeVote Research Nonpartisan
Bill Summary · HF 590

Summary of HF 590 (Electronic benefit transfer card use modified)

Note: The bill as introduced focuses on 340B drug program protections for covered entities and contract pharmacies, rather than provisions directly about electronic benefit transfer (EBT) card use. The title listed in the official record appears not to reflect the substantive content adopted in the version text provided. This summary highlights the introduced provisions related to 340B drugs.

Overview

  • Bill number: HF 590
  • Title (as reflected by the content): Electronic benefit transfer card use modified (note: the substantive content currently concerns 340B drugs and program protections)
  • Primary sponsor: Barker
  • Status: Introduced February 25, 2025; referred to the House Committee on Human Services Finance and Policy (also appears as introduction and first reading in mid-February in related records)
  • Related bill: SF 806 (companion)

Purpose and intent

The bill adds explicit Minnesota state-law protections around the acquisition and delivery of 340B drugs by covered entities and their contract pharmacies. It seeks to prevent manufacturers or distributors from denying, restricting, or otherwise interfering with the ability of covered entities to obtain 340B drugs or have those drugs delivered to contract pharmacies, except where such actions are prohibited by federal law (specifically the U.S. Department of Health and Human Services).

Key provisions and changes

New definitions (found in Section 510D.1)

  • NEW SUBSECTION 01. “340B drug”
    • Defined as a covered outpatient drug for which a manufacturer has offered a reduced price under 42 U.S.C. §256b, purchased by a covered entity.
  • NEW SUBSECTION 04A. “Distributor”
    • Defined as a person other than a manufacturer engaged in the wholesale distribution of a prescription drug to a retail community pharmacy. This includes repackers, jobbers, brokers, warehouses, independent wholesale drug traders, and retail community pharmacies that conduct wholesale distributions.
  • NEW SUBSECTION 05A. “Manufacturer”
    • Defined as the same as the definition in section 1927(k)(5) of the federal Social Security Act.

Prohibited conduct (Section 510D.2)

  • NEW SUBSECTION 4. Prohibition on interference
    • A manufacturer or distributor shall not, directly or indirectly, deny, restrict, or otherwise interfere with:
    • the acquisition of a 340B drug by a covered entity, or
    • the delivery of a 340B drug to a contract pharmacy,
    • unless such purchase or receipt is prohibited by the U.S. Department of Health and Human Services.

Who or what would be affected

  • Affected parties:
    • Manufacturers of 340B drugs (as defined by the bill)
    • Distributors of prescription drugs (as defined)
    • Covered entities eligible for 340B pricing
    • Contract pharmacies that receive 340B drugs on behalf of covered entities
  • The bill clarifies state-law protections applicable to these parties, aligning state rules with federal 340B program requirements.

Procedural and timeline aspects

  • Introduction date: February 25, 2025
  • Initial committee referral: Health and Human Services (with an additional record noting introduction and first reading on February 13, 2025 in related contexts)
  • Legislative action status as of the summary: Introduced and referred to the relevant committee; no floor action or final passage yet
  • Related actions: Companion bill SF 806

Potential impact and considerations

  • Aims to reduce barriers created by manufacturers or distributors that could impede access to 340B drugs for safety-net providers and other covered entities.
  • Establishes clear definitions to ensure consistency in enforcement and interpretation.
  • Relies on federal law (HHS) for any prohibitions that would supersede state actions.
  • For covered entities and contract pharmacies, the bill could improve reliability of 340B drug procurement and distribution.

Related context

  • The “340B drug” program involves discounted outpatient medications for eligible entities; this bill reinforces access protections at the state level.
  • Companion bill: SF 806 (indicating parallel or mirrored provisions in another chamber).

If you’d like, I can map these provisions to a side-by-side comparison with current Minnesota law and summarize any anticipated compliance considerations for manufacturers and distributors.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.