340B State Legislation: Michigan
Overview
The Michigan state legislature is considering policies (HB5350 and SB1779) that would exacerbate the inflationary impact of 340B 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, while raising prices due to incentives for steep markups on medications, lost rebates, health system consolidation, and incentives to prescribe higher-cost drugs and fewer biosimilars.
Unfortunately, the Michigan Legislature is considering a bill, SB 1179 and HB 5350, that would raise healthcare costs for Michigan families and perpetuate healthcare consolidation by exacerbating the impact of 340B on purchasers and employees. 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 Coalition, and Economic Alliance for Michigan led a joint letter from state and national employer purchaser organizations expressing their opposition to SB 1179 due to its inflationary effects on healthcare costs for working families.
