Minnesota Statutes Various State Taxes and Programs (Ch. 289A-295) § 295.582. Authority

Subdivision 1. Tax expense transfer. (a) The tax expense generated bysection 295.52may be transferred as follows:

(b) The transfer of the tax expense under paragraph (a) must comply with the following:

(c) Payment of the transferred tax expense is required as follows:

(d) A third-party purchaser or pharmacy benefits manager must comply with this section regardless of whether the third-party purchaser or pharmacy benefits manager is a for-profit, not-for-profit, or nonprofit entity.

(e) Nothing in this section limits the ability of a hospital, surgical center, health care provider, pharmacy, or wholesale drug distributor to recover all or part of thesection 295.52obligation by other methods, including increasing fees or charges.

(f) Any hospital, surgical center, or health care provider subject to a tax undersection 295.52or a pharmacy that has paid the additional expense transferred under this section by a wholesale drug distributor may file a complaint with the commissioner responsible for regulating the third-party purchaser if at any time the third-party purchaser fails to comply with this section.

(g) If the commissioner responsible for regulating the third-party purchaser finds at any time that the third-party purchaser has not complied with this section, the commissioner may take enforcement action against a third-party purchaser which is subject to the commissioner's regulatory jurisdiction and which does not allow a hospital, surgical center, pharmacy, or provider to pass-through the tax expense. The commissioner may by order fine or censure the third-party purchaser or revoke or suspend the certificate of authority or license of the third-party purchaser to do business in this state if the commissioner finds that the third-party purchaser has not complied with this section. The third-party purchaser may appeal the commissioner's order through a contested case hearing in accordance with chapter 14.

(1) a pharmacy that has paid additional expense transferred under this section by a wholesale drug distributor from exercising its option under this section to transfer such additional expenses generated by thesection 295.52obligations on to the third-party purchaser or pharmacy benefits manager; or

(2) a pharmacy that is subject to tax undersection 295.52, subdivision 4, from exercising its option under this section to recover all or part of thesection 295.52obligations from the third-party purchaser or a pharmacy benefits manager.