Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
State of Minnesota
S.F. No. 1050 - Federally Qualified Health Centers
Author: Senator Jim Abeler
Prepared By: Katie Cavanor, Senate Counsel (651/296-3801)
Date: March 8, 2017


SF1050 makes a number of modifications to the payment systems for federally qualified health centers.

Section 1(256B.0625, subd. 13) requires medical assistance to cover drugs acquired through the 340B drug pricing program and dispensed by a 340B contract pharmacy to a patient of a federally qualified health center (FQHC).

Section 2 (256B.0625, subd. 30) Paragraph (g) effective January 1, 2019, permits FQHC to elect to be paid under the prospective payment system, an alternative payment methodology consistent with federal regulations or an alternative methodology described under paragraph (l).

Paragraph (i) effective for services provided on or after July 1, 2017, FQHCs and rural health clinics must submit claims directly to the commissioner of human services for payment and the commissioner shall provide claims information for recipients enrolled in a managed care plan or county-based purchasing plan to the plan on a regular basis.

Paragraph (l) establishes a new alternative payment methodology.

Section 3 (256B.0625, subd. 57) permits an FQHC or rural health clinic to elect to be paid for Medicare part B crossover claims in accordance with this subdivision or under the system described under Minnesota Statutes, section 256B.0625, subdivision 30.

Section 4 requires the commissioner of human services, in consultation with the FQHCs, to develop a process to identify and report at point of sale the 340B drugs that are dispensed to enrollees of managed care plans and county-based purchasing plans who are enrollees of FQHCs in order to exclude these claims from the Medicaid rebate program, and report to be legislature that the process has been developed and if has not the reason why it was not developed.

Section 5 appropriates funds from the general fund to the commissioner of health to distribute as subsidies to FQHCs.

Check on the status of this bill
Back to Senate Counsel and Research Bill Summaries page

This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
Last review or update: 03/08/2017
If you see any errors on this page, please e-mail us at