Pharmacy benefit managers and health carriers required to use prescription drug rebates and other compensation to benefit covered persons, and report required.

HF 1075 requires pharmacy benefit managers (PBMs) and health insurance plans to apply prescription drug rebates and other financial benefits directly to lower patients' out-of-pocket costs at the pharmacy counter. Specifically, PBMs and health carriers must pass rebates to the covered person for each prescription, reducing their immediate payment - unless the patient's existing cost-sharing is already lower, in which case retained savings must lower future premiums. The bill also mandates annual reports starting March 1, 2026, to verify compliance with these requirements. This law affects all Minnesotans with prescription drug coverage under plans using PBMs.