Whitmer Signs Bills Aiming To Lower Prescription Drug Prices

MICHIGAN — Michigan Governor Gretchen Whitmer signed three bipartisan bills into law Wednesday that aims to reduce prescription drug prices for all Michiganders by setting new limits and increasing transparency, the governor's office announced Wednesday.

The legislation forces pharmacists to provide honest advice to patients about treatment options, and will hold pharmacy benefit managers — who oversee coverage for employers, insurers, and others — accountable.

"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," Whitmer said. "This bill brings much needed transparency to our healthcare system and is a testament to what we can do when we put Michiganders first."

To increase transparency between patients and pharmacists — so that a pharmacist can communicate openly and honestly with patients about options — managers cannot force pharmacists to sign "gag clauses," which is a contract that prevents a pharmacist to openly discuss and compare drug prices on the open market under the new law.

In addition, the new law prohibit pharmacy benefit managers from raising drug prices by reimbursing pharmacists for prescription drugs and requires them to file transparency reports on their costs with the Department of Insurance and Financial Services.

The new bills also mandate that a pharmacy cannot charge a patient a co-pay that is higher than the cost of the drug that is given to the patient.

"In 2017, 32 percent of Michigan residents stopped taking their medication as prescribed due to the cost," said bill sponsor Rep. Julie Calley. "This impactful new law will directly improve the affordability and access of prescriptions. It also adds much needed transparency into our healthcare system."

There is also a bipartisan bill in the pending in the state's congress that would cap insulin prices at $50 a month. The bill is going through the Legislature at the same time Michigan Attorney General Dana Nessel recently launched an investigation into one of the three largest drug companies in the United States manufacturing insulin.