State Rep. Greg Markkanen, of Hancock, voted to finalize a plan to help reduce the cost of prescription medicine for residents, families and seniors across the U.P. House Bill 4348 focuses on lowering drug prices by addressing the out-of-control nature of pharmacy benefit managers (PBMs).
PBMs are an unregulated industry in Michigan that can manipulate drug prices to raise profits while consumers don’t see any savings. By establishing a regulatory framework, the plan adds layers of transparency and accountability within the industry so that rebates from drug manufacturers are more likely to be passed along to patients and health plans.
Drug price manipulation allowed middlemen to overcharge Michigan Medicaid by at least $64 million, according to a 2019 report by the Michigan Pharmacists Association.
“The average price of medication to treat diabetes, depression and other common conditions has more than doubled the past six years,” Markkanen said. “People continue to see prices for medication going up despite these record profits and it forces them into tough choices and difficult financial decisions.
“Everyone who needs these types of prescriptions to live a happier, healthier life should be able to have access to it – and I’ll continue to support measures that help ensure that.”
After approval in the Michigan House and Senate, HB 4348 now advances to the governor’s desk for consideration.
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