1.1 	A bill for an act
1.2 	relating to human services; providing for prescription
1.3 	drug bulk purchasing; proposing coding for new law in
1.4 	Minnesota Statutes, chapter 256.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [256.9551] PRESCRIPTION DRUG BULK PURCHASING
1.7 	PROGRAMS.
1.8 		Subdivision 1.Intrastate prescription drug bulk
1.9 	purchasing program. The commissioner of human services is
1.10 	directed to establish and administer an intrastate prescription
1.11 	drug bulk purchasing program in order to try to save money for
1.12 	the state, its agencies, and local governments in regard to the
1.13 	cost of the prescription drugs they purchase.  Under the
1.14 	program, the Department of Human Services will consolidate drug
1.15 	purchasing by the state prescription drug program, state
1.16 	hospitals and other health care facilities, state educational
1.17 	facilities, the State Health Plan, and other state and local
1.18 	government entities and programs that purchase significant
1.19 	quantities of prescription drugs and wish to participate in the
1.20 	intrastate bulk purchasing program.  The Department of
1.21 	Administration will negotiate the prices of the prescription
1.22 	drugs purchased under this program unless the prices of some or
1.23 	all of the purchased drugs are negotiated by an agent of an
1.24 	interstate prescription drug bulk purchasing program described
1.25 	in subdivision 2.
2.1 		Subd. 2.Interstate prescription drug bulk purchasing
2.2 	program. The commissioner of human services is directed to
2.3 	establish or join an existing interstate prescription drug bulk
2.4 	purchasing program with other interested states.  The program
2.5 	will select an agent to negotiate prices for the states in the
2.6 	program.  The department shall administer the state's
2.7 	participation in the program.
2.8 		Subd. 3.Negotiation of canadian prescription drug
2.9 	prices. The commissioner of human services shall request the
2.10 	Department of Administration to negotiate with state-approved
2.11 	Canadian pharmacies or wholesalers the prices to be charged to
2.12 	Minnesota residents who purchase their prescription drugs from
2.13 	Canada pursuant to the state's prescription drug importation
2.14 	program.  The commissioner shall also determine whether it would
2.15 	save money for the state's intrastate prescription drug bulk
2.16 	purchasing program to purchase some or all of the prescription
2.17 	drugs from Canada and will make such purchases if it would
2.18 	result in significant savings.  The commissioner shall also
2.19 	encourage the members of the state's interstate prescription
2.20 	drug bulk purchasing program to purchase some or all of the
2.21 	necessary prescription drugs in Canada if it would result in
2.22 	significant savings.
2.23 		Subd. 4.Public/private intrastate prescription drug bulk
2.24 	purchasing alliance. The commissioner shall establish and
2.25 	administer a public/private intrastate prescription drug bulk
2.26 	purchasing alliance under which the state and interested private
2.27 	entities can consolidate their drug purchasing to save money.
2.28 	The participation of private entities in this alliance is
2.29 	voluntary.  The Department of Administration will negotiate the
2.30 	prices of prescription drugs purchased through the alliance.
2.31 		Subd. 5.Commissioner discretion. The commissioner of
2.32 	human services is not required to establish or administer any of
2.33 	the bulk purchasing programs in subdivisions 1 to 4 if the
2.34 	commissioner determines that any such program would not result
2.35 	in significant savings to the state.  The commissioner shall not
2.36 	include the state Medicaid program, MinnesotaCare program, or
3.1 	Department of Corrections in the bulk purchasing programs in
3.2 	subdivisions 1 to 4.  These programs may later be included in
3.3 	any or all of the bulk purchasing programs in subdivisions 1 to
3.4 	4 if the commissioner deems those bulk purchasing programs to be
3.5 	beneficial to the state and that the inclusion of the state
3.6 	Medicaid program, MinnesotaCare, and the Department of
3.7 	Corrections in a bulk purchasing program would result in savings
3.8 	to the state.
3.9 		Subd. 6.Pharmacy participation. Any pharmaceuticals
3.10 	purchased by state or local government entities or Minnesota
3.11 	consumers pursuant to the bulk purchasing programs identified in
3.12 	subdivisions 1 to 4 shall be distributed through Minnesota
3.13 	pharmacies, unless the commissioner or the state or local
3.14 	government entities select an alternate distribution system.