340B State Legislation: Michigan
Overview
The Michigan state legislature is considering legislation that would exacerbate the inflationary impact of the 340B program on employers and working families.
The 340B program enables participating hospitals to purchase medications at significant discounts and sell them to plan sponsors at the prevailing rate, a “buy low, sell high” scheme that results in profits at the expense of working families. There is no guarantee that 340B profits are passed to vulnerable patients in local communities. At the same time, the program raises prices by incentivizing hospital systems to markup medications, consolidate, and prescribe more, higher-cost drugs and fewer biosimilars.
Unfortunately, Michigan policymakers are considering proposals that would exacerbate the impact of 340B, further increasing healthcare costs for Michigan families and perpetuating healthcare consolidation. The National Alliance and the Michigan Health Purchasers Coalition together urge policymakers to oppose this legislation.
340B Employer Resources
Explore these additional resources for more information on the impact of 340B and this proposed legislation on working families in Michigan.
340B Bill: Bad for Business in Michigan
Learn more about the impact of proposed 340B legislation on employers, unions, and working families in Michigan.
340B Bills are Bad for Michigan
Bret Jackson, CEO of the Michigan Health Purchasers Coalition, explains how 340B is driving up costs for his members and working families across the state – and how proposed legislation would make healthcare more expensive.
The Impact of Proposed Legislation on MI Working Families
Read Bret Jackson's testimony submitted for the record detailing employers' concerns about the proposed legislation and its impact on working families.
Employers Express Concerns About Michigan 340B Bills
The National Alliance, Michigan Health Purchasers Coalitions, and Economic Alliance for Michigan led a joint letter from state and national employer purchaser organizations expressing their opposition to 340B legislation in consideration during Michigan’s 2024 Legislative Session, which threatened to inflate healthcare costs for working families.
Price Transparency in Hospital Services and Procedures Series
The Michigan Health Purchasers Coalition (MIHPC) launched the Price Transparency in Hospital Services and Procedures Series to highlight the significant disparities in healthcare costs across different geographic locations and hospital systems. This initiative seeks to shed light on the issue of price transparency in hospital services and emphasize the potential for substantial savings through informed decision-making.
