(The Center Square) – If some bipartisan cooperation continues in Michigan, prescription costs could soon be regulated by the government.
All 19 Democrats and one Republican joined in the state Senate to pass a series of bills that would create the Prescription Drug Affordability Board. Companion legislation with bipartisan support is already planned for the House of Representatives.
Democrats hold a 19-18 advantage in the Senate. Republicans have a six-vote advantage in the House.
The plan, which passed the Senate 20-15, says the board would be an independent body with the ability to review drug costs and recommend pricing strategies, including price limits on prescription drugs sold in the state.
“The burden of high drug costs falls hardest on our most vulnerable residents – seniors, children, and those managing chronic conditions,” said Sen. Darrin Camilleri, D-Trenton. “This board will give us a tool to protect consumers and bring much-needed fairness, transparency, and accountability to drug pricing in our state.”
A bill analysis from the Senate Fiscal Agency said the package of legislation would “have a significant impact on state government and no fiscal impact on local governments.”
The five board members would be paid by taxpayers, which the agency said could reach up to $750,000, but added salary costs are unknown. Also, members of an advisory board would be reimbursed for expenses, which could run between $10,000 and $200,000 a year based on other similar boards.
The agency also estimated the full cost of the board with three full-time employees and administrative expenses could reach between $3 million and $4 million annually.
Senate Democrats say the costs are necessary to reign in the rising costs of prescription drugs across the state. They pointed to plans in Gov. Gretchen Whitmer’s State of the State address that said nearly a third of Michigan residents stopped taking medications because of the cost.
Others, though, say government price controls will create an adverse business climate for the drug industry in the state.
David Worthams, director of employment policy for the Michigan Manufacturers Association, testified recently before the Senate Finance, Insurance and Consumer Protection Committee. He said, “We are empathetic to those who must participate in prescription drug therapies. These treatments are a critical component of health care for many Michiganders. The rising cost of these advances presents many challenges for consumers. On face value, the idea of a government board who will cap the price of these drugs seems like a good idea. However, state price controls will lead to a hostile business environment for an industry that is a major employer and contributor to Michigan’s economy.”
