Session Update: Creating Auction to Lower State's Prescription Drug Costs

Introducing competition to the state’s process for procuring prescription drug plans for state employees is the intent of a measure introduced by a bipartisan pair of lawmakers Friday, March 26. Authored by Senator Michelle Benson, R-Ham Lake, and Representative Michael Howard, DFL- Richfield, the bill would allow the state to share bid information submitted by Pharmacy Benefit Managers (PBMs) to find the lowest cost for a prescription drug plan, thereby providing cost savings to Minnesota taxpayers.

According to Benson, SF 2178 / HF 2327, is modeled on a 2016 New Jersey law, which saved that state billions of dollars in prescription drug costs. Cautioning that Minnesota’s savings will not be as significant because Minnesota is a smaller state with fewer state employees, she said, “We think that both our state employees and the taxpayers of Minnesota are going to benefit from this innovative idea.”