1.1 	A bill for an act
1.2 	relating to human services; establishing the Minnesota pharmacy access 
1.3 	program; appropriating money;proposing coding for new law in Minnesota 
1.4 	Statutes, chapter 256.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	ARTICLE 1
1.7 	PHARMACY ACCESS PROGRAM

1.8 	Section 1. [256.9545] MINNESOTA PHARMACY ACCESS PROGRAM.
1.9 		Subdivision 1.Establishment; administration. The commissioner shall establish 
1.10 	and administer the Minnesota pharmacy access program, effective July 1, 2007.
1.11 		Subd. 2.Commissioner's authority. The commissioner shall administer a 
1.12 	pharmacy access program for low-income Minnesotans who lack drug coverage. The 
1.13 	commissioner shall seek a rebate agreement from all manufacturers of covered drugs as 
1.14 	defined in section 256B.0625, subdivision 13. For each drug, the amount of the rebate 
1.15 	shall be equal to the rebate as defined for purposes of the federal rebate program in United 
1.16 	States Code, title 42, section 1396r-8. The rebate program shall utilize the terms and 
1.17 	conditions used for the federal rebate program established according to section 1927 of 
1.18 	title XIX of the federal Social Security Act.
1.19 		Subd. 3.Definitions. For the purpose of this section, the following terms have 
1.20 	the meanings given them.
1.21 	(a) "Commissioner" means the commissioner of human services.
1.22 	(b) "Covered prescription drug" means a prescription drug as defined in section 
1.23 	151.44, paragraph (d), that is:
2.1 	(1) covered under medical assistance as described in section 256B.0625, subdivision 
2.2 	13;
2.3 	(2) provided through a participating pharmacy; and
2.4 	(3) provided by a manufacturer that has a fully executed rebate agreement with the 
2.5 	commissioner under this section and complies with that agreement.
2.6 	(c) "Enrolled individual" means a person who is eligible for the program under 
2.7 	subdivision 4 and has enrolled in the program according to subdivision 5.
2.8 	(d) "Health carrier" means an insurance company licensed under chapter 60A to 
2.9 	offer, sell, or issue an individual or group policy of accident and sickness insurance as 
2.10 	defined in section 62A.01; a nonprofit health service plan corporation operating under 
2.11 	chapter 62C; a health maintenance organization operating under chapter 62D; a joint 
2.12 	self-insurance employee health plan operating under chapter 62H; a community integrated 
2.13 	service network licensed under chapter 62N; a fraternal benefit society operating under 
2.14 	chapter 64B; a city, county, school district, or other political subdivision providing 
2.15 	self-insured health coverage under section 471.617 or sections 471.98 to 471.982; and a 
2.16 	self-funded health plan under United States Code, title 29, section 1169(a), the Employee 
2.17 	Retirement Income Security Act of 1974, as amended.
2.18 	(e) "Individual or family gross income" means income calculated under chapter 
2.19 	256L.
2.20 	(f) "Participating manufacturer" means a manufacturer as defined in section 151.44, 
2.21 	paragraph (c), that agrees to participate in the Minnesota pharmacy access program.
2.22 	(g) "Participating pharmacy" means a pharmacy as defined in section 151.01, 
2.23 	subdivision 2, that agrees to participate in the Minnesota pharmacy access program.
2.24 		Subd. 4.Eligible persons. To be eligible for the program, an applicant must:
2.25 	(1) be a permanent resident of Minnesota as defined in section 256L.09, subdivision 
2.26 	4;
2.27 	(2) not be entitled to Medicare or enrolled in Medicare, medical assistance, general 
2.28 	assistance medical care, or MinnesotaCare;
2.29 	(3) not be enrolled in and have currently available prescription drug coverage under 
2.30 	a health plan offered by a health carrier or employer or under a pharmacy benefit program 
2.31 	offered by a pharmaceutical manufacturer;
2.32 	(4) meet the citizenship requirements of section 256L.04, subdivision 10; and
2.33 	(5) have individual or family gross income equal to or less than 300 percent of the 
2.34 	federal poverty guidelines. The commissioner shall adjust the income limit each July 1 by 
2.35 	the annual update of the federal poverty guidelines following publication by the United 
2.36 	States Department of Health and Human Services.
3.1 		Subd. 5.Social Security number. (a) Individuals applying for the Minnesota 
3.2 	pharmacy access program must provide a Social Security number.
3.3 	(b) The commissioner shall not deny eligibility to an otherwise eligible applicant 
3.4 	who has applied for a Social Security number and is awaiting issuance of that Social 
3.5 	Security number.
3.6 	(c) Individuals who refuse to provide a Social Security number because of 
3.7 	well-established religious objections are exempt from the requirements of this subdivision. 
3.8 	The term "well-established religious objections" has the meaning given in Code of Federal 
3.9 	Regulations, title 42, section 435.910.
3.10 		Subd. 6.Application procedure. (a) Applications and information on the program 
3.11 	must be made available at county social services agencies, health care provider offices, 
3.12 	and agencies and organizations serving people with disabilities. Individuals shall submit 
3.13 	applications and any information specified by the commissioner as being necessary to 
3.14 	verify eligibility directly to the commissioner. The commissioner shall determine an 
3.15 	applicant's eligibility for the program within 30 days from the date the application is 
3.16 	received.
3.17 	(b) An enrollee's eligibility must be renewed every 12 months with the 12-month 
3.18 	period beginning the month after the application is approved.
3.19 		Subd. 7.Participating pharmacy. According to a valid prescription, a participating 
3.20 	pharmacy must sell a covered prescription drug to an enrolled individual at the Medicaid 
3.21 	rate, minus an amount that is equal to the rebate amount described in subdivision 9. Each 
3.22 	participating pharmacy shall provide the commissioner with all information necessary to 
3.23 	administer the program, including, but not limited to, information on prescription drug 
3.24 	sales to enrolled individuals and usual and customary retail prices.
3.25 		Subd. 8.Notification of rebate amount. The commissioner shall notify each 
3.26 	drug manufacturer, each calendar quarter or according to a schedule to be established by 
3.27 	the commissioner, of the amount of the rebate owed on the prescription drugs sold by 
3.28 	participating pharmacies to enrolled individuals.
3.29 		Subd. 9.Provision of rebate. To the extent that a participating manufacturer's 
3.30 	prescription drugs are prescribed to a resident of this state, the manufacturer must 
3.31 	provide a rebate equal to the rebate provided under the medical assistance program for 
3.32 	any prescription drug distributed by the manufacturer that is purchased by an enrolled 
3.33 	individual at a participating pharmacy. The manufacturer must provide full payment by the 
3.34 	end of the quarter following the quarter of submission of the state invoice for the rebate, 
3.35 	or according to a schedule to be established by the commissioner. The commissioner 
3.36 	shall deposit all rebates received into the Minnesota prescription drug dedicated fund 
4.1 	established under subdivision 11. The manufacturer must provide the commissioner with 
4.2 	any information necessary to verify the rebate determined per drug.
4.3 		Subd. 10.Payment to pharmacies. The commissioner shall distribute on a 
4.4 	biweekly basis an amount that is equal to an amount anticipated to be collected under 
4.5 	subdivision 9 to each participating pharmacy based on the prescription drugs sold by that 
4.6 	pharmacy to enrolled individuals.
4.7 		Subd. 11.Minnesota pharmacy access account. (a) The Minnesota pharmacy 
4.8 	access account is established as an account in the State Treasury. The commissioner of 
4.9 	finance shall dedicate all rebates paid under subdivision 9, any federal funds received for 
4.10 	the program, and any appropriations or allocations designated for the program. A sum 
4.11 	sufficient to make the payments required under subdivision 10 is annually appropriated 
4.12 	from the pharmacy access account to the commissioner of human services for the purpose 
4.13 	of funding subdivision 10.
4.14 	The commissioner must administer the program so that the costs total no more than 
4.15 	funds appropriated plus the drug rebate proceeds.

4.16 	ARTICLE 2
4.17 	APPROPRIATIONS

4.18 	Section 1. HUMAN SERVICES APPROPRIATIONS.
 4.19 	The sums shown in the columns marked "APPROPRIATIONS" are appropriated 
4.20 	from the general fund, or another named fund, to the agencies and for the purposes 
4.21 	specified in this act, to be available for the fiscal year indicated for each purpose, and are 
4.22 	added to the appropriations in Laws 2005, chapter 4, article 9. The figures "2006" and 
4.23 	"2007" where used in this article, mean that the appropriation or appropriations listed 
4.24 	under them are available for the fiscal year ending June 30, 2006, or June 30, 2007, 
4.25 	respectively. The first year is fiscal year 2006. The second year is fiscal year 2007. The 
4.26 	biennium is fiscal years 2006 and 2007.

4.27 | Summary by Fund
4.28 | | 2006 | 2007
4.29 | Health Care Access Fund | 500,000 | 1,913,000

4.30 | Sec. 2. PRESCRIPTION DRUG PROGRAM | | | |

4.31 | Health Care Access | | | |
5.1 	TRANSFER TO THE MINNESOTA 
5.2 	PHARMACY ACCESS ACCOUNT.
5.3 	Notwithstanding Minnesota Statutes, section 
5.4 	295.581, the commissioner of finance shall 
5.5 	transfer $1,576,000 from the health care 
5.6 	access fund to the Minnesota pharmacy 
5.7 	access account in fiscal year 2008, $990,000 
5.8 	in fiscal year 2009. Notwithstanding any 
5.9 	section to the contrary, this section shall 
5.10 	sunset June 30, 2009.

5.11

5.12

Sec. 3. HEALTH CARE 
ADMINISTRATION

5.13 | Health Care Access | | -0- | | 469,000
5.14 	HEALTH CARE ACCESS FUND 
5.15 	APPROPRIATIONS. Of the amount 
5.16 	appropriated for fiscal year 2007, $190,000 
5.17 	is for administration of the Minnesota 
5.18 	pharmacy access program and $279,000 is 
5.19 	for Medicare Part D implementation.
5.20 	HEALTH CARE ADMINISTRATION 
5.21 	BASE LEVEL ADJUSTMENT. The 
5.22 	health care access fund base for health care 
5.23 	administration is decreased by $33,000 in 
5.24 	fiscal year 2008 and $33,000 in fiscal year 
5.25 	2009 for Medicare Part D enrollment and 
5.26 	access activities.
5.27 	HEALTH CARE ADMINISTRATION 
5.28 	BASE LEVEL ADJUSTMENT. The 
5.29 	health care access fund base for health care 
5.30 	administration is increased by $280,000 in 
5.31 	fiscal year 2008 and $280,000 in fiscal year 
5.32 	2009 for administrative activities associated 
5.33 	with the Minnesota pharmacy access fund.

6.1 | Sec. 4. HEALTH CARE OPERATIONS | | | |

6.2 | Health Care Access | | | |
6.3 	HEALTH CARE OPERATIONS BASE 
6.4 	LEVEL ADJUSTMENT. The health 
6.5 	care access fund base for health care 
6.6 	administration is decreased by $86,000 in 
6.7 	fiscal year 2008 and $86,000 in fiscal year 
6.8 	2009.

6.96.10

Sec. 5. AGING AND ADULT SERVICES 
GRANTS

6.11 | Health Care Access | | 500,000 | | 1,250,000
6.12 	AGING AND ADULT SERVICES 
6.13 	GRANTS FOR MEDICARE PART D 
6.14 	ASSISTANCE. $500,000 in fiscal year 
6.15 	2006 and $1,250,000 in fiscal year 2007 is 
6.16 	appropriated to the commissioner of human 
6.17 	services for grants awarded through the 
6.18 	Minnesota Board on Aging to Minnesota 
6.19 	Association of Area Agencies on Aging 
6.20 	to provide information and enrollment 
6.21 	assistance for the Medicare Part D program.
6.22 	AGING AND ADULT SERVICES 
6.23 	GRANTS BASE LEVEL ADJUSTMENT.
6.24 	The health care access fund base for aging 
6.25 	and adult services grants is decreased by 
6.26 	$100,000 in fiscal year 2008 and $100,000 
6.27 	in fiscal year 2009 for information and 
6.28 	assistance grants to Minnesota Association 
6.29 	of Area Agencies on Aging for assisting with 
6.30 	Medicare Part D.

7.1

7.2

Sec. 6. CONTINUING CARE 
MANAGEMENT

7.3 | Health Care Access Fund | | -0- | | 108,000
7.4 	CONTINUING CARE MANAGEMENT 
7.5 	BASE LEVEL ADJUSTMENT. The health 
7.6 	care access fund base for continuing care 
7.7 	management is decreased by $10,000 in fiscal 
7.8 	year 2008 and $10,000 in fiscal year 2009 to 
7.9 	reflect decreased administrative funding for 
7.10 	information and assistance activities.