LANSING, Mich. (March 6, 2025) — Today, the Michigan Senate passed bipartisan legislation sponsored by Senate Majority Floor Leader Sam Singh (D-East Lansing) to increase accountability for pharmaceutical companies and protect access to health care services and low-cost prescription drugs for Michiganders who are uninsured, older, or have lower incomes. By prohibiting drug manufacturers from denying access to low-cost medications to health care institutions covered in the federal 340B program, Senate Bill 94 would ensure kids, families, and older adults around the state can access critical health care programming they rely on.
“The federal 340B program is an instrumental safety net for 87 hospitals around the state — in both urban and rural areas — and the numerous Michiganders that they serve,” said Sen. Singh. “This legislation safeguards critical access to life-saving affordable prescription drugs that residents in every corner of the state rely on.”
Created by Congress in 1992, the 340B Drug Pricing Program helps qualified health care providers stretch their resources to better serve vulnerable patient populations throughout the country. It requires pharmaceutical manufacturers that participate in Medicaid or Medicare to sell outpatient drugs to organizations that care for uninsured or low-income patients at reduced prices, including children’s hospitals, rural hospitals, federally qualified health centers, and Native American health clinics, among others. The 340B entities then pass those cost savings onto the patients by providing an array of valuable health care services to their communities — mobile clinics, financial assistance programs, case management, low-cost medication, or extended weekend and evening hours.
The legislation would also mandate annual reporting requirements for both the pharmaceutical companies and 340B entities, ensuring greater transparency surrounding prescription drug costs and how the various programs are operated. As part of the bill package, Senate Bill 95, sponsored by Sen. Jonathan Lindsey (R-Coldwater), would also boost transparency in the health care system, enabling patients to have their debt cleared by a hospital if they were found in violation of federal price transparency laws.
“The passage of medical price transparency marks a significant victory for patients and families across our state,” said Sen. Lindsey. “This bipartisan effort demonstrates our collective commitment to ensuring that healthcare costs are clear and accessible, empowering individuals to make informed decisions about their health and financial well-being.”
From spearheading the most generous earned sick time policy in the nation and combatting youth tobacco use to securing more funding for rural hospitals, this legislation builds on Sen. Singh’s work to ensure the health care needs of Michiganders are met. It will head to the House for further consideration.
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