LANSING, Mich. (Jan. 8, 2025) — To kick off the first day of the 103rd Legislature, Michigan Senate Democrats, led by Sens. Darrin Camilleri (D-Trenton), Veronica Klinefelt (D-Eastpointe), and Sue Shink (D-Northfield Twp.), hit the ground running and introduced legislation to protect the health and financial stability of residents. To achieve this, Senate Bills 3-5 would establish a Prescription Drug Affordability Board in Michigan (PDAB) — an independent body designed to lower prescription drug costs and hold Big Pharma accountable. This legislation comes at a critical moment: while the pharmaceutical industry raked in over $29 billion in net profits during a recent three-month period, nearly a third of Michigan residents stopped taking their prescriptions because of cost and 60% of older adults reported concerns over not being able to afford their essential medications.
“I’ve heard countless stories from constituents and residents across Michigan about the devastating impact of skyrocketing prescription drug costs. This growing crisis has, in too many cases, resulted in tragic loss of life,” said Sen. Camilleri. “While pharmaceutical companies post record profits, hardworking Michiganders are forced to forego or ration medication in order to be able to cover their rent or afford groceries. I will not stand by while Big Pharma prioritizes greed over people’s lives. Our residents deserve access to life-saving medications, and a Prescription Drug Affordability Board will help make that a reality.”
The PDAB would be able to analyze and recommend ways to lower drug costs in Michigan. This includes setting upper payment limits — maximum amounts that can be charged for prescription drugs — on prescription drugs sold in the state. By establishing these limits on the most expensive medications, the board can help find cost-saving options. A PDAB will also allow Michiganders to save money without giving up necessary medications.
“Michiganders shouldn’t have to choose between affording critical medications or paying for rent and groceries,” said Sen. Klinefelt. “It’s time to rein in these out-of-control costs for residents and ensure they can access the medications they need when they need them — and that’s exactly what the Prescription Drug Affordability Board will accomplish.”
The board would consist of experienced professionals in economics, health care, supply chain management, and academia, with no connections to the pharmaceutical industry. This group of impartial experts will provide essential oversight and transparency for the prescription drug industry. Plus, the public would be able to weigh in and give feedback to ensure the board’s work addresses the needs and concerns of Michigan residents.
“Everyone should be able to afford the prescription drugs they need to stay healthy,” said Sen. Shink. “Too many people are forced to make the impossible choice between life-saving medications or meeting basic needs like food and housing. This legislation to create a Prescription Drug Affordability Board is a big step toward staying healthy more affordable in Michigan.”
Legislation introduced by Senate Democrats in the previous session to establish a PDAB garnered support from a broad coalition of medical professionals and associations, policy experts and patients. If these bills are passed and signed into law, Michigan would join six other states who have taken bold action to rein in the rising costs of prescription medications through a PDAB.
These bills build on Michigan Senate Democrats’ efforts during the 102nd Legislature to lower costs and grow opportunities for working families here in Michigan, which include phasing out the unfair retirement tax, quintupling the state Earned Income Tax Credit, and making child care and higher education more affordable and accessible.