Provisions governing hospital reimbursement for biological products to treat rare diseases modified.

This bill requires hospitals in Minnesota to receive separate reimbursement for biological products used in cell or gene therapy treatments for rare diseases, effective July 1, 2025. Under the new rules, hospitals must be paid the actual cost of acquiring these biological products when they are administered to patients in an inpatient setting. The requirement applies only if drug manufacturers enter into value-based arrangements with the state commissioner, and the reimbursement rate will be set using the same methodology used for outpatient drug administration. The law amends existing Minnesota statutes to clarify how hospitals should be compensated for these specific medical treatments.