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Minnesota's insulin safety net program faces renewed legal challenges

A pharmaceutical industry group argues the program violates the Constitution by requiring drugmakers to supply insulin without compensation.

ST PAUL, Minn. — Editor's note: The video above originally aired in December 2021.

A federal appeals court has reinstated a legal challenge to Minnesota's insulin safety net program, which requires drugmakers to provide insulin to Minnesota residents who meet certain eligibility requirements.

The Minnesota Insulin Safety Net Program was created as part of the Alec Smith Insulin Affordability Act, which Governor Tim Walz signed into law in 2020. The program allows Minnesota residents with diabetes to seek an emergency one-time 30-day supply of insulin from a pharmacy. Patients also have the option to enroll in a program to receive 90-day supplies. 

The act was named for 26-year-old Alec Smith, who died after rationing his insulin when he was no longer eligible for his parents' insurance plan.

Pharmaceutical Research and Manufacturers of America (PhRMA) filed a lawsuit in June 2020, claiming the Act violated the "Takings Clause" of the Fifth Amendment to the U.S. Constitution by requiring drugmakers to supply insulin without compensation and caused direct harm to several of the organization's members. However, a U.S. District Court judge originally threw out the case, ruling that PhRMA lacked legal standing.

In its ruling reviving the case, judges with the U.S. Court of Appeals for the Eighth Circuit wrote that the "district court erred in dismissing PhRMA's suit for lack of standing" and returned the case to the district court.

State officials noted the insulin program will continue, even while facing the reinstated legal challenge.

"We are reviewing the decision, but it’s important to note the court did not rule on the merits of the law or enjoin it," said Minnesota Attorney General's Office spokesperson John Stiles.

In 2021, more than 1,100 Minnesota residents used the state's insulin safety net program to secure over $6 million worth of the lifesaving drug, according to the Minnesota Board of Pharmacy and the MNsure health insurance exchange.

PhRMA representatives have not yet commented on Tuesday's ruling to reinstate their lawsuit.

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