The bill would mandate that pharmacy benefit managers provide transparency reports. | Edward Jenner/Pexels
The bill would mandate that pharmacy benefit managers provide transparency reports. | Edward Jenner/Pexels
Bipartisan legislation that focused on lowering prescription drug prices recently advanced through Michigan Legislature under Gov. Gretchen Whitmer's support.
If passed, the bill would mandate that pharmacy benefit managers provide transparency reports with information such as profits and backend costs that result from prescribed medications, the governor's office reported in a press release. The benefit managers would also be required to obtain a license from the state, which would increase oversight.
"This bipartisan legislation will help us lower the cost of prescription drugs for Michigan families," Whitmer said in the release. "We must continue working together to improve transparency in health care, hold accountable people and corporations profiting from skyrocketing prices, and make life-saving, essential medication like insulin affordable for every Michigander who needs it."
The bill was partially the result of recommendations from Whitmer's task force on prescription drugs, which discussed ways to lower drug costs with stakeholders, members of the Legislature, and health policy experts, the governor's office reported.
"The legislation passed today: Requires transparency reports from pharmacy benefit managers. Requires state licensure for pharmacy benefit managers. Allows for greater enforcement authority for licensed pharmacy benefit managers. Helps make necessary medications affordable for all Michigan families. Prohibits questionable business practices," the governor's office reported.
In Whitmer's State of the State Address in 2022, she highlighted Attorney General Dana Nessel's probe of one of the biggest insulin-producing drug companies in the United States, the governor's office reported. Nessel hopes to invoke the Michigan Consumer Protection Act to discover how the pharmaceutical industry affects drug prices. As the investigation continues, members of the Legislature are attempting to cap insulin prices at $50 per month.
"I look forward to signing this legislation, and I am grateful to my Prescription Drug Task Force for all the work they did to provide a solid set of recommendations, including a few that were included in this legislation to help Michiganders save money on prescription drugs," Whitmer said. "Together, we can keep lowering costs for families as we grow our economy, create good-paying jobs, and put Michiganders first."
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