January 22, 2020
On May 20, 2019, Gov. Walz signed SF278. The law took effect January 1, 2020, and requires pharmacy benefit managers (PBMs) doing business in the state to become licensed by the state. Licensure requires that PBMs disclose upon request to health plan sponsors information concerning rebates and other financial arrangements negotiated by the PBM when negotiating the prices that health plans pay drug manufacturers. Failing to comply with this and other requirements could subject PBMs to fines and other penalties.
The law imposes no new employer compliance obligations, but employers who sponsor health plans should be aware of this law, especially when dealing with PBMs doing business in the state.
PBM Licensing Law »