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DE2 tracks hospital directed payments, a pharmacy dispensing add‑on and funds medication-repository work
Summary
The omnibus amendment contains language to redirect hospital surcharge deposits, seeks federal approval for hospital directed payments, directs a single-state pharmacy benefit manager and establishes a $1.84 direct pharmacy dispensing payment; Roundtable Rx and other medication-repository work received recognition from witnesses.
The DE2 amendment contains multiple provisions intended to affect hospital funding, pharmacy payments and medication-repository activity. Nonpartisan staff outlined key sections that redirect existing hospital surcharge revenue, authorize a directed-payment program for hospitals pending federal approval, and create pharmacy-related changes including a single-state pharmacy benefit manager and a $1.84 per-prescription directed dispensing payment for MA plan year 2026.
Nonpartisan staff identified the hospital surcharge redirect language (House file 2557 tracking) and the directed-payment authorization that would require federal approval. Mary Krenke of the Minnesota Hospital Association thanked the committee for including the directed payment concept and said the policy could be a lifeline to hospitals with negative operating margins; she also praised DHS staff support on technical implementation.
On pharmacy, staff and testifiers described three related items: a provision to select a single-state pharmacy benefit manager to process pharmacy claims for MA enrollees under managed care (House file 2242), a $1.84 per-filled-prescription directed dispensing payment in MA (House file 1100), and an extension of the drug formulary committee sunset. Dr. Rowan Mann, a pharmacist who represents Roundtable Rx, described how the medication-repository program redirects usable medications to people who cannot afford them and said the program has redistributed nearly $2 million worth of medicines to rural and underserved communities.
Chairs and staff noted the DE2 also delays implementation of a single dental administrator and contains other tracking items across MDH and DHS. The committee did not vote; items remain subject to further negotiation and federal approvals where required.
Ending: Testimony from hospitals, pharmacy advocates and medication-repository representatives supported the DE2’s provisions as stabilizing measures; chairs and staff said implementation will require departmental rule-making and possible federal waivers or approvals.
