Subd. 1. Definitions.

1. (a) For purposes of this section, the following terms have the meanings given.
2. (b) "Drug" has the meaning given in section 151.01, subdivision 5.
3. (c) "Enrollee" has the meaning given in section 62Q.01, subdivision 2b.
4. (d) "Formulary" means a current list of covered prescription drug products that is subject to periodic review and update.
5. (e) "Health plan" has the meaning given in section 62Q.01, subdivision 3.
6. (f) "Pharmacy benefit manager" has the meaning given in section 62W.02, subdivision 15.
7. (g) "Prescription" has the meaning given in section 151.01, subdivision 16a.

Subd. 2. Formulary changes.

1. (a) Except as provided in paragraphs (b) and (c), a health plan must not, with respect to an enrollee who was previously prescribed the drug during the plan year, remove a drug from the health plan's formulary or place a drug in a benefit category that increases the enrollee's cost for the duration of the enrollee's plan year.

2. (b) Paragraph (a) does not apply if a health plan changes the health plan's formulary:

   1. (1) for a drug that has been deemed unsafe by the United States Food and Drug Administration (FDA);
   2. (2) for a drug that has been withdrawn by the FDA or the drug manufacturer; or
   3. (3) when an independent source of research, clinical guidelines, or evidence-based standards has issued drug-specific warnings or recommended changes with respect to a drug's use for reasons related to previously unknown and imminent patient harm.

3. (c) Paragraph (a) does not apply if a health plan removes a brand name drug from the health plan's formulary or places a brand name drug in a benefit category that increases the enrollee's cost if the health plan:

   1. (1) adds to the health plan's formulary a generic or multisource brand name drug rated as therapeutically equivalent according to the FDA Orange Book, a biologic drug rated as interchangeable according to the FDA Purple Book, or a biosimilar at the same or lower cost to the enrollee; and
   2. (2) provides at least a 60-day notice to prescribers, pharmacists, and affected enrollees.