McDonald Rivet Helping to Lead Effort to Improve Affordability, Accessibility of Life-Saving Medicine
LANSING, Mich. (Oct. 4, 2023) — Today, the Michigan Senate passed legislation to create a Prescription Drug Affordability Board (PDAB) aimed at lowering costs and expanding patient access in Michigan. Sen. Kristen McDonald Rivet (D-Bay City) sponsored Senate Bill 485, which together with Senate Bills 483 and 484 (sponsored respectively by Sens. Darrin Camilleri and Veronica Klinefelt) would authorize this independent, nonpartisan board to evaluate prescription drug costs and related impact on Michiganders, and establish upper payment limits on prescription drugs sold in the state.
“Big Pharma’s profit margin is triple the average of other U.S. industries while Michigan families have to go without life-saving drugs because of their extreme costs,” said McDonald Rivet. “Almost everyone has personal or family stories of facing co-pays exceeding thousands a month. This legislation will reduce costs, improve health, and save lives.”
“Too many of us are forced to choose between prescription drugs and groceries. I hear these stories from the district every day. It’s what motivated me to help lead this effort and bring transparency to the pharmaceutical industry. We simply must make medications more affordable and accessible.”
The 5-member PDAB will consist of leaders experienced in health care economics, health policy, and clinical medicine without financial stakes or bias in decision-making. The legislation has criteria for which drugs could be reviewed for affordability and includes safeguards against external influence, ensuring a comprehensive and nonpartisan approach.
The board would use data and research to assess drug costs and set upper payment limits at which insurers, employers, purchasers and governments can afford to provide particular drugs to everyone in the state who should receive them. These affordability caps would lower costs for every Michigan resident, employer, pharmacy and health plan.
In last month’s hearing on this bill package, the Senate Committee on Finance, Insurance, and Consumer Protection heard testimony from Michigan doctors, nurses, and consumers on their experiences with exorbitant prescription drug costs and how a PDAB could improve Michiganders’ health and financial stability. Since introduced, this legislation has 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 the Committee to Protect Healthcare.
“The number one reason seniors skip or ration their prescriptions is because they can’t afford them. This must stop,” said Paula Cunningham, AARP Michigan State Director. “We cannot allow older Michiganders to be the cash machine for big drug companies. AARP supports opening up the books and making the drug companies accountable for increasing prices year after year.”
The Michigan Prescription Drug Task Force found nearly a third of residents aged 19 to 64 stopped taking their prescriptions because of the cost. If enacted, this legislation would make Michigan the seventh state with a prescription drug affordability panel. It positions Michigan to be a national leader in prioritizing affordability and equitable access to prescription drugs.
Selected to serve as one of the Michigan Senate’s two Assistant Majority Floor Leaders, Sen. McDonald Rivet has 30 years of experience in educational and economic policy and strategic leadership. She represents Senate District 35 which includes Bay City, Midland, Saginaw and surrounding townships in the Great Lakes Bay Region.
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