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Lawmakers hear HB1100 as pharmacists and patients warn of rising pharmacy deserts
Summary
House File 1100 would create a temporary dispensing-reimbursement lifeline for qualifying community pharmacies to address closures driven by low reimbursements from pharmacy benefit managers (PBMs), testifiers said. The committee heard bipartisan support and multiple pharmacy owners described large losses on Medicaid and commercial claims.
Representative Bonner presented House File 1100 to the Health Finance and Policy Committee on March 12, describing the bill as a "critical lifeline" for Minnesota community pharmacies facing unsustainable dispensing reimbursements.
Pharmacists, pharmacy owners and industry groups testified about closures and patient impacts. Jessica Astrup Arret, a third-generation pharmacist who operates 12 community pharmacies, said Minnesota has lost many pharmacies and that independent outlets serve entire counties where closure would create long travel distances. "We need a lifeline. We need something quick," she said, describing situations in which staff drive to administer injectable medications or patients lose access to sliding-scale cash programs after closures.
Independent pharmacy owners and advocates described broad trends: Andrew Russell and John Hessian provided detailed examples and a data extract showing tens of thousands of claims filled below operational cost at one pharmacy. Testifiers and the Minnesota Farmers Union linked the closures to pharmacy benefit manager (PBM) reimbursement practices and urged short-term aid while larger PBM reforms are developed. Health plans' representative Chelsea Olsen said plan members share concern about low MA reimbursement levels and asked for clarifying changes to reduce administrative burden and align payment timelines with industry standards.
Representative Bonner moved and the committee adopted an A1 author's amendment to correct a drafting detail; the chair laid HF1100, as amended, over for possible inclusion in the omnibus bill. Committee members noted multiple policy options exist, including proposals to run more prescription payments through fee-for-service Medicaid or broader PBM reforms.
Why it matters: Witnesses said pharmacy closures are affecting rural counties and urban neighborhoods, disrupting patient access to medication, vaccinations and in-person counseling. Several members and witnesses called the bill a short-term bandage while structural PBM reforms are developed.
Next steps: HF1100, as amended, was laid over for possible omnibus inclusion; staff and authors will likely work on fiscal details and possible coordination with other proposals.
