WeVote
Log In

Bill

Bill

SF 5302

Prescription drugs prices establishment subject to the Medicare Drug Price Negotiation Program

2025-2026 Regular Session Introduced by Liz Boldon and 2 co-sponsors

Minnesota caps prices for certain drugs at the federal maximum fair price (plus dispensing fees) or NADAC, requires disclosures to the affordability board, and bans drug withdrawal

Referred to Health and Human Services
#drugsandmedicine #healthandhealthdepartment
0
WeVote Research Nonpartisan
Bill Summary · SF 5302

Summary of SF 5302 (2025-2026) — Prescription drugs prices establishment subject to the Medicare Drug Price Negotiation Program (Minnesota)

Purpose and intent

SF 5302 proposes to establish a state framework to cap the price of certain prescription drugs (referred to as “referenced drugs”) on the basis of the federal maximum fair price determined under federal law. The bill aims to ensure that Minnesota patients pay no more than the higher of the federal maximum fair price or the NADAC plus dispensing fees, and to require transparency from health plans and pharmacy benefit managers (PBMs) to support drug affordability oversight by the Prescription Drug Affordability Board.

Key provisions and changes

  • Definitions and scope

    • Introduces a new Minnesota statute section, 62Q.586, to define terms such as “maximum fair price,” “NADAC,” “pharmacy benefit manager,” “referenced drug,” and “manufacturer.”

  • Maximum fair price requirements

    • Manufacturers may not sell a referenced drug in Minnesota for more than the maximum fair price (as established by the federal program under 42 U.S.C. § 1320f-3) plus any applicable dispensing fees.
    • Health plans and PBMs must reimburse pharmacies for a referenced drug at no less than the greater of the maximum fair price or NADAC, plus the established dispensing fee. The provision does not bar dispensing fees above the maximum fair price.
    • Health plans and PBMs must disclose, upon request, detailed financial information to the Minnesota Prescription Drug Affordability Board. This includes administrative fees, rebates, network access fees, and the total payments to pharmacies, with supporting data on ingredient costs and dispensing fees. Data disclosure aligns with existing data requirements under 62J.91, subdivision 3.

  • Prohibition on withdrawing a drug to evade price controls

    • Manufacturers are forbidden from withdrawing a referenced drug from sale or distribution in Minnesota to dodge rate limitations, unless they provide 180 days’ written notice to the Commissioner of Health before withdrawal.
    • The Commissioner of Health would impose a civil penalty for withdrawal violations. For each withdrawn drug, penalties are the greater of:
    • $100,000; or
    • the total annual savings for that drug, as determined by the Prescription Drug Affordability Board.

  • Effective date

    • The act, if enacted, would take effect January 1, 2027.

Who is affected

  • Manufacturers of pharmaceuticals designated as referenced drugs.
  • Health plans and PBMs operating in Minnesota.
  • Pharmacies dispensing referenced drugs.
  • The Minnesota Prescription Drug Affordability Board (established under section 62J.87) for data access and affordability determinations.
  • The Commissioner of Health for enforcement actions and penalties.

Procedural and timeline notes

  • The bill specifies an effective date of January 1, 2027.
  • It requires ongoing data sharing between health plans/PBMs and the Prescription Drug Affordability Board, subject to data protection and Minnesota data requirements.
  • Penalty framework activates upon withdrawal of a referenced drug in violation of the prohibitions.

Overall, SF 5302 introduces a state-level price oversight mechanism tied to federal maximum fair price benchmarks, with mandatory reimbursements to pharmacies at or above competitive price baselines and new reporting obligations to support affordability governance.

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

Sign in to ask a question.