Pharmacy benefit managers and health carriers usage of prescription drug rebates and other compensation requirement to benefit covered persons provision

This bill requires pharmacy benefit managers (PBMs) and health insurance plans in Minnesota to use prescription drug rebates and other payments directly to lower patients' out-of-pocket costs at the pharmacy counter. It mandates that these entities pass along all rebates to the patient for a specific prescription, unless the patient's existing copay is already lower than the reduced cost after applying the rebate. If rebates are retained under that exception, they must be used to lower future premiums or costs for patients. The bill also requires PBMs and insurers to submit annual compliance reports starting March 1, 2026, and takes effect January 1, 2026.