Pharmacy benefit manager requirement clarification

SF 3854 clarifies Minnesota's process for evaluating pharmacy benefit manager (PBM) contracts to decide whether to use competitive bidding for future contracts. The bill requires the state to compare actual prescription drug costs under the current 2023-2024 PBM contract with projected costs from the previous 2018-2022 contract (adjusted for formulary and usage changes) by March 1, 2025. The legislative auditor must then verify this comparison by April 1, 2025. If the analysis shows no savings, the state may skip competitive bidding for the next PBM contract; if savings were achieved, competitive bidding must be used; and if inconclusive, the state may also skip bidding.