Reverse auction procurement requirement for SEGIP pharmacy benefit contracts modified, use of spread pricing by pharmacy benefit managers prohibited, license application fees increased, fiduciary duties imposed, and money appropriated.

HF 2851 modifies Minnesota's rules for pharmacy benefit managers (PBMs). It prohibits PBMs from using "spread pricing" (charging health plans more than they pay pharmacies for drugs) and imposes new fiduciary duties requiring PBMs to act in health plan members' best interests. The bill also increases PBM license application fees to at least $15,000 and appropriates funds for enforcement. These changes directly affect PBMs operating in Minnesota, aiming to increase transparency and accountability in drug pricing.