Reverse auction procurement requirement modification for SEGIP pharmacy benefit contracts

This bill modifies Minnesota's requirements for pharmacy benefit managers (PBMs) handling state employee health plan (SEGIP) pharmacy contracts. It prohibits PBMs from using "spread pricing" (charging health plans more than they pay pharmacies for drugs) and increases license application fees from $8,500 to a minimum of $15,000. The bill also imposes new fiduciary duties on PBMs, requiring them to act in good faith and disclose conflicts of interest. These changes apply specifically to PBMs operating under SEGIP pharmacy benefit contracts in Minnesota.