Hospital reimbursement for certain biological products to treat rare diseases provisions modifications

This bill modifies Minnesota's hospital reimbursement rules for biological products used in cell or gene therapy to treat rare diseases. It requires hospitals to receive separate payment for these biological products when provided during inpatient stays, but only if the drug manufacturer agrees to a value-based arrangement with the state commissioner. The reimbursement rate must equal the actual cost the hospital pays to acquire the biological product, and the commissioner must establish this rate using the same method applied to outpatient drug reimbursements. The changes take effect on July 1, 2025, once federal approval is obtained for the required documentation.