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

A bill for an act

relating to health care; modifying provisions governing hospital reimbursement

for certain biological products to treat rare diseases; amending Minnesota Statutes

2024, section 256.969, subdivision 32.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 256.969, subdivision 32, is amended to read:

Subd. 32.

Biological products for cell and gene therapy.

(a)
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Effective July 1, 2025,

and upon necessary federal approval of documentation required to enter into a value-based

arrangement under section
256B.0625, subdivision 13k
,
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The commissioner
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may
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shall
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provide

separate reimbursement to hospitals for biological products provided in the inpatient hospital

setting as part of cell or gene therapy to treat rare diseases, as defined in United States Code,

title 21, section 360bb
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, if the drug manufacturer enters into a value-based arrangement with

the commissioner
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.

(b)
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The commissioner shall establish the separate reimbursement rate for biological

products provided under paragraph (a) based on the methodology used for drugs administered

in an outpatient setting under section
256B.0625, subdivision 13e
, paragraph (e).
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Hospitals

must be paid the actual acquisition cost for biological products provided under paragraph

(a).
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