February 18, 2022
FOR IMMEDIATE RELEASE
STATEMENT FROM NCODA LEGISLATIVE & POLICY ADVISORY COMMITTEE
Contact: Kevin Scorsone | NCODA Legislative & Policy Liaison
Phone: (919) 903-2057
OVERWHELMING CONSENSUS IN HOUSE PUTS PBM BILL ON DOORSTEP
A Comprehensive PBM Reform Bill is on the Desk of Michigan Gov. Gretchen Whitmer Awaiting Signature
The trend of sweeping PBM reform continues in Michigan. Yesterday the Michigan House voted 101 to 4 in favor of curbing the power that PBMs can wield in the Great Lakes State.
HB 4348 will focus on requiring licensure and imposes regulation for PBMs that operate in all areas of Michigan. The regulations will be overseen by the Michigan Department of Insurance and Financial Services. The bill will enact restrictions on PBMs and will expand reform in four distinct areas:
- Licensing and Transparency
- Patient Protection for Payment and Access to Care
- Good Faith and Fair Dealing
- Pharmacy Reimbursement, Fees and Audits
All four of these focus areas will benefit by requiring PBMs to register with state agencies. They will also help protect patient rights and increase transparency for patients regarding their drug coverage and costs. In addition, the bill will require all PBMs to publish up-to-date lists on pricing, fees, and reduce unfair audit processes.
NCODA applauds the efforts of the Michigan Legislators, and we hope that Governor Whitmer will act swiftly and deliberately in signing this bill into law. We have seen PBM successes in many states recently, and we are hopeful that Michigan will be added to the list of states that have played a role in improving a broken PBM system.