June 17, 2021

Today at 1 p.m.: Student pharmacists to watch senate hearing on PBM reform bill

Legislation to reform pharmacy benefit managers will have a hearing in the Senate Health Policy Committee at 1 p.m. today, June 17. Part of a 15-bill package aimed at lowering the cost of prescription drugs, the bill passed the Michigan House of Representatives in March by a vote of 97-10.

The WSU Applebaum chapter of the Student National Pharmaceutical Association (SNPhA) Legislative/Membership Benefits National Initiative will be watching today’s hearing along with student members of the Michigan Pharmacists Association (SMPA).

House Bill 4348, introduced by Rep. Julie Calley (R-Portland), would require PBMs in Michigan to register with the Department of Insurance and Financial Services (DIFS) in order to operate. Additionally, it would prohibit PBMs from engaging in unfair reimbursement practices; prohibit patient steering to PBM-owned pharmacies; prohibit retroactive clawbacks; require reimbursements be based on the National Average Drug Acquisition Cost, an objective benchmark that accurately reflects the true market costs for Michigan pharmacies; and establish fair audit procedures for community pharmacies.

“In the long battle of reducing health care costs, increased regulation of PBMs has made its way to the forefront. Because of controversial procedures used by PBMs, pharmacies and patient advocacy groups have duly turned to lawmakers for support,” said Hussein Safaoui, who is the SNPhA Legislative/Membership Benefits National Initiative Interim Chair and SMPA member.

SNPhA’s Legislative/Membership Benefits National Initiative strives to promote equal rights and advocate for underserved populations. The purpose of this initiative is to address, educate, and advocate for legislation that positively impacts the profession of pharmacy and issues related to healthcare for all patients, including the minority and underserved populations. This initiative is dedicated to enforcing and advocating for legislation.

“Ultimately, steps in the right direction begin with awareness within the discourse community on the issues at hand. We need to put value in regulatory procedures in order to provide fair payer environments,” added Safaoui. “We encourage student pharmacists to get involved and be aware of the laws that affect our profession and the health care of patients.”

Watch today’s committee hearing on the PBM reform bill live at 1 p.m. on the Michigan Senate's website by clicking Health Policy and Human Services in the Live Stream section of the page.

Please note the hearing could be streaming on one of three channels; refer to the Live Schedule on the right side of the page.

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