Sen. Brinks (D-Grand Rapids) and Rep. Camilleri (D-Trenton) introduced SB 889 and HB 5842, respectively that would establish a Prescription Drug Affordability Board (PDAB), similar to those already established in Colorado and Maryland. These bills, along with other companion bills, make up a package that would determine rates, set limits and cap how much up-charging can be done on certain medications, essentially invoking price controls on prescription drug manufacturers. The legislation is being pushed by AARP, a special interest group that receives hefty commissions on branded insurance products from payers like United Health. Their arguments, along with that of other bill proponents, are based on misinformed assumptions and myths.
MichBio believes that a Prescription Drug Affordability Board is the wrong way to address patient out-of-pocket drug costs. Rather than taking a holistic, systemwide approach to finding a solution to consumer costs, the proposed PDAB focuses primarily on the biopharmaceutical sector, and would have a chilling effect on drug discovery and innovation in Michigan. Efforts to limit drug prices through a PDAB are simply flawed. MichBio stands ready to work with Michigan legislators to develop and implement solutions that enhance patient access and address affordability in a meaningful manner.