Michigan Senate Passes Bill to Cap Prescription Drug Prices

The Michigan Senate has passed a package of bills to establish a Prescription Drug Affordability Board, which would have the authority to set price caps on certain expensive prescription drugs if they are found to create affordability challenges for patients or the healthcare system. The five-member board would be appointed by the governor and advised by a stakeholder council representing diverse interests, including drugmakers and patient advocates. Supporters, mainly Democrats with support from one Republican, argue that the board is necessary to protect Michiganders from rising drug costs that force people to ration or skip medications. Critics, particularly from the pharmaceutical industry and most Republicans, contend that the board would interfere with the free market, likening it to government overreach and warning it could harm innovation. Similar boards have been established in other states, although their long-term effects are yet unknown. House Democrats plan to introduce companion legislation, but the proposal faces an uncertain future in the Republican-controlled House.