Bill > SB0003

This bill creates the Prescription Drug Cost and Affordability Review Act, which establishes a Prescription Drug Affordability Board and a Prescription Drug Affordability Stakeholder Council to review and potentially regulate prescription drug prices in Michigan. The board will consist of 5 members appointed by the governor with expertise in healthcare economics, policy, and patient advocacy, who will be responsible for selecting prescription drug products for review based on specific criteria such as high wholesale acquisition costs or significant price increases. The board can conduct cost and affordability reviews and potentially establish upper payment limits for certain drugs if they determine the medications create affordability challenges for healthcare systems or patients. The stakeholder council, composed of 21 members representing various stakeholders like manufacturers, healthcare providers, insurers, and patient advocates, will assist the board in its decision-making. The bill requires annual reporting to the legislature about drug price trends and includes provisions for appealing board decisions. A one-time study will be conducted to examine generic drug pricing, insurance impacts, and potential drug shortages. The board is authorized to create rules and enter contracts to implement the act, though implementation is subject to state appropriation. The bill aims to increase transparency and potentially control prescription drug costs for patients and healthcare systems in Michigan.

Budget and Finance, Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0003