Use of spread pricing by pharmacy benefit managers prohibited, license application fees increased, permissible sources of income limited, fiduciary duties imposed, and money appropriated.

This bill prohibits pharmacy benefit managers in Minnesota from using spread pricing, a practice where they charge health plans higher prices for prescription drugs than they pay pharmacies, and requires their fees to be transparent and based only on the actual cost of services provided. It also imposes fiduciary duties on these managers and limits their income sources to prevent conflicts of interest that could affect drug pricing or coverage decisions. The legislation increases license application and renewal fees for pharmacy benefit managers and requires more detailed information in their applications, including details about leadership and governance. Additionally, the bill defines key terms like "rebates" and "spread pricing" to clarify how these financial arrangements are regulated under Minnesota law.