Prescription drug affordability board proposal passes Michigan Senate

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Michigan lawmakers moved one step closer Wednesday to making Gov. Gretchen Whitmer's proposed prescription drug affordability board a reality.

On a party-line vote, Michigan Democrats approved legislation to establish such a board, which Whitmer champions as a way to lower drug costs.

"The board would use data and evidence-based research to tackle the cost of prescription drugs," Whitmer said in speech delivered to lawmakers just before they returned from their summer break. "Nobody should have to make impossible choices between getting better and paying the bills. Let's get it done."

Democratic lawmakers followed suit shortly after Whitmer's speech by introducing a three-bill package to create a board and holding a hearing on the legislation last month.

Michigan Gov. Gretchen Whitmer delivers her "What’s Next" Address that outlines her legislative priorities for the fall at the Lansing Shuffle in Lansing on Wednesday, Aug. 30, 2023. In her speech, she called for legislation to establish a prescription drug affordability board.
Michigan Gov. Gretchen Whitmer delivers her "What’s Next" Address that outlines her legislative priorities for the fall at the Lansing Shuffle in Lansing on Wednesday, Aug. 30, 2023. In her speech, she called for legislation to establish a prescription drug affordability board.

The Michigan Senate passed all three bills to tackle prescription drug affordability.

Senate Bill 483 would establish a prescription drug affordability board and a prescription drug affordability stakeholder council made up of the governor's appointees. Under the bill, the board would consult the council and select at least one prescription drug for an affordability review. If the board finds that the drug's pricing creates affordability challenges for the state's health care systems or imposes high costs on patients, the board can set an upper payment limit for the drug. GOP and Democratic state senators adopted an amendment that would bar board members from lobbying during their time on the board and for several years after their term.

"Every year prescription drug costs go one direction: higher," said bill sponsor state Sen. Darrin Camilleri, D-Brownstown Township, in a floor speech ahead of the vote. He said if Michigan creates its first-ever prescription drug affordability board it would help consumers take power back from "big pharma." State Sen. Kristen McDonald Rivet, D-Bay City, said the issue is personal for her. An autoimmune disease that runs in her family means that she pays $4,000 a month for her medication's co-pay. She said she watched her mother die, in part, because she could not afford the medication she needed while living on a fixed income. It shouldn't take a "Herculean effort" for Michigan residents to afford the medication they need to live, she said.

The other two bills in the package — Senate Bills 484 and 485 — approved by Senate Democrats would require health insurers in Michigan and Medicaid to comply with the payment limits set by the board.

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Six states have established some kind of drug affordability boards or councils, according to the National Conference of State Legislatures. They differ in responsibilities such as Ohio's which simply developed policy recommendations while Colorado's board — like the one proposed in Michigan — can create payment limits for high-cost drugs, according to the council.

Sen. Darrin Camilleri, D-Brownstown Township, speaks during a press conference announcing legislation to create a Prescription Drug Affordability Board in Michigan on Tuesday, Sept. 12, 2023, at the Michigan Capitol in Lansing, Mich.
Sen. Darrin Camilleri, D-Brownstown Township, speaks during a press conference announcing legislation to create a Prescription Drug Affordability Board in Michigan on Tuesday, Sept. 12, 2023, at the Michigan Capitol in Lansing, Mich.

Proponents of the legislation in Michigan contend a board would hold pharmaceutical companies accountable and lower costs for patients. Critics argue the proposed board would set government price controls that will stifle biopharmaceutical innovation. State Sen. Lana Theis, R-Brighton, said she's worried upper payment limits set by the board could be cost-prohibitive, forcing manufacturers to limit or prohibit sales of lifesaving prescription drugs in Michigan. Meanwhile, state Sen. John Damoose, R-Harbor Springs, said it would make more sense for federal — rather than state — policies to tackle high prescription drug costs.

The bill package to set up a prescription drug affordability board next heads to the state House for consideration.

Contact Clara Hendrickson at chendrickson@freepress.com or 313-296-5743. Follow her on X, previously called Twitter, @clarajanehen.

This article originally appeared on Detroit Free Press: Michigan's prescription drug affordability plan advances state Senate