Senate Committee on Finance, Insurance, and Consumer Protection hears array of positive testimony on bills to create Prescription Drug Affordability Board
LANSING, Mich. (Sept. 20, 2023) — Today, Sens. Darrin Camilleri (D-Trenton), Veronica Klinefelt (D-Eastpointe) and Kristen McDonald Rivet (D-Bay City), testified on Senate Bills 483-485 to the Senate Committee on Finance, Insurance, and Consumer Protection. Their legislation aims to create an independent Prescription Drug Affordability Board (PDAB) in Michigan to help lower prescription drug costs for all consumers.
The PDAB would have the authority to review prescription drug costs and evaluate their impact on Michiganders. The board would be able to establish upper payment limits (UPL) on any prescription drugs sold in the state.
“Every day, we hear terrible stories of people having to ration their medications or skip doses because their prescriptions are just too expensive,” said Sen. Camilleri. “This is a crisis that’s only been getting worse for years, and it’s time to fix it. By creating a nonpartisan Prescription Drug Affordability Board, we have the opportunity to address rising drug costs and make sure all Michiganders can afford their medications.”
In 2020, when we were in the midst of a global pandemic, costs of everything began to rise. At the same time, 500 prescription drugs skyrocketed by two times the rate of inflation in Michigan. By instituting a system of checks on profit-driven pharmaceutical companies, the PDAB will make sure every Michigander can access the medications they need to survive and help ensure savings reach the consumer.
“Our legislation aims to lower the cost of the most expensive prescription drugs for every Michigan resident, employer and small business, pharmacy and health plan,” said Sen. McDonald Rivet. “A PDAB brings much-needed accountability, oversight and transparency to pharmaceutical companies, making them more responsive to consumers — in my district and around the state.”
The PDAB would be made up of unbiased experts and have safeguards against external influence. The legislation will also establish avenues for input from consumers, the general public, and medical industry experts.
“Relief for Michigan residents to afford prescription drugs is long overdue and I’m glad to help do something about it,” said Sen. Klinefelt. “This legislation will prevent price gouging and keep vital medicine affordable and accessible for everyone.”
At today’s committee hearing, the legislation received widespread support from local, state and national health and policy experts and advocates, including:
- Michigan Association of Health Plans;
- Michigan Nurses Association;
- Michigan State Medical Society;
- Michigan Pharmacists Association;
- AARP Michigan;
- Michigan League for Public Policy; and
- Committee to Protect Healthcare.
These groups were joined by individual doctors, nurses, and consumers in providing supportive testimony on the PDAB legislation. Together, they shared their insights and perspectives on the exorbitant costs of prescription drugs and the positive impact a Prescription Drug Affordability Board in Michigan would have on drug prices and consumer protection.
Six states have already established a PDAB to successfully set upper payment price limits on the most expensive prescription drugs and additional states are in the process of creating their own independent boards. With these bills, Michigan is poised to be a national leader in tackling high drug costs.
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