On Wednesday, Michigan Gov. Gretchen Whitmer signed a trio of bipartisan bills aimed at lowering the price of prescription drugs, according to M Live.
The bill establishes regulations to limit unjust practices by Pharmacy Benefit Managers (PBMs), a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D plans, the Federal Employees Health Benefits Program, and state government employee plans.
According to the bill, pharmacists are required to disclose generic prescription drug prices to patients and prohibit them from entering contracts with PBMs to guarantee the distribution of certain prescription drugs.
Whitmer signed the bills from a Meijer in Lansing, against a backdrop of pill bottles and pharmacy pickup bags.
She said in a statement, “For too long, unlicensed pharmacy benefit managers have been able to engage in practices that drive up costs for Michiganders whose lives and health depend on critical prescription drugs like insulin. This bill brings much-needed transparency to our healthcare system and is a testament to what we can do when we put Michiganders first.”
Whitmer signed House Bills (HB) 4348, 4351, and 4352 into law.
The HB 4348 law creates a license for PBMs and requires them to file transparency reports and report conflicts of interest. It also prevents PBMs from charging medical plan sponsors more than they pay the pharmacy for medication.
The HB 4351 and HB 4352 laws prohibit certain prescription price nondisclosure contracts. They require pharmacists to disclose the selling price of generic drugs. The laws also ban carriers or PBMs from requiring patients to pay a co-pay that is higher than the cost of the drug being dispensed to them.
Several organizations that represent the healthcare and business community have supported the bills. The Michigan Health & Hospital Association, Grand Rapids Chamber of Commerce, Michigan Manufacturers Association and the Economic Alliance for Michigan have shown their support to the laws.
