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Senate file 2152 seeks temporary pharmacy payments amid reports of widespread closures
Summary
Senate file 2152 would establish an interim directed pharmacy dispensing payment (an additional $4.50 per dispense as testified) to qualifying community pharmacies to help stem closures driven by managed‑care PBM reimbursement below operational cost. The bill was laid over for possible inclusion.
Senate file 2152, introduced by Senator Mann, would create a temporary directed pharmacy payment intended to provide short‑term financial relief to community pharmacies facing under‑reimbursement from pharmacy benefit managers (PBMs) and managed care organizations (MCOs).
Testimony and problem description: Independent pharmacists told the committee that pharmacies are closing at an accelerating rate and that many Medicaid (MA) prescriptions are reimbursed through multiple MCO‑contracted PBMs at rates that do not cover drug acquisition and dispensing costs. Witnesses said 40 Minnesota pharmacies closed since 2023 and cited 32 closures in 2024; one speaker said roughly 17% of Minnesotans live in ZIP codes without a pharmacy. Testimony explained that roughly 15% of MA fills are paid by fee‑for‑service and about 85% are paid through MCOs that subcontract with PBMs, and that an updated state cost‑of‑dispensing survey shows an average break‑even dispensing cost of $11.55 per prescription.
Short‑term proposal and broader reform: Supporters asked for a short‑term add‑on of $4.50 per dispense to keep doors open while a longer term solution is developed. Several testifiers also urged broader reform: Senate file 1574, the following item on the agenda, would shift Minnesota's MA pharmacy benefit to a single PBM (a pharmacy benefit administrator) and use transparent pricing (NADAC plus) as a longer‑term fix.
Committee action and context: Members expressed bipartisan concern about closures and uncertainty about whether the temporary payment is sufficient. Senator Mann said the $4.50 add‑on is a bridge to more comprehensive PBM reform. The committee laid Senate file 2152 over for possible inclusion and requested fiscal information.
