Transparency Legislation Signed Into Law Today!

History was made in Michigan today!

Bill: Senate Bill 656

For the first time ever, pharmacy benefit managers (PBMs) contracted through Medicaid health plans will have to provide more information related to their Maximum Allowable Cost (MAC) pricing determinations. This was an important first step in the larger goal creating more transparency in the health insurance and PBM industries.

Senate Bill (SB) 656, introduced and championed by Sen. Bruce Caswell (R-Hillsdale), was signed into law today at 10:06 am. MPA staff Eric Roath, Heather Meyers and Amanda Lick joined Sen. Caswell and Annette Frosch and Casey Sullivan of Nash Drugs in Hillsdale in witnessing Michigan Gov. Rick Snyder sign the bill. It was an incredible opportunity to witness such a historical moment for community pharmacy in Michigan.

Specifically, SB 656 requires three things:

• PBMs must provide at least three National Drug Codes (NDCs), if available, that they used to determine their MAC price 
•  The drugs must be available and deliverable in the State of Michigan 
•  PBMs must respond in writing or electronically within 10 business days to an inquiry made by pharmacies 

Please note that the bill will likely go into effect 90 days after the legislative session ends. The estimated effective date is April 1, 2015. The bill was drafted with immediate effect, but that was waived due to the department needing more time to put the process in place. 

SB 656 is a landmark bill for many reasons, least of which is that the passage of this bill also represents the best that advocacy has to offer. It reminds us that pharmacists, technicians and students in Michigan can make a difference by advocating for their profession. Several MPA members, including pharmacists JoAnn Sanborn, Michael Sanborn and Annette Frosch, and pharmacy technician Casey Sullivan advocated for this cause and educated Sen. Caswell on the reimbursement discrepancies that exist in the pharmacy industry. In addition, MPA supported Sen. Caswell and our members by educating other legislators on the importance of this issue.

The passage of this bill is proof that when pharmacists in Michigan speak, they are heard. When an association works with its members to address their concerns, together they create a united message to communicate to policymakers, which can result in positive changes!

To learn more about advocacy at MPA, how we can help your voice be heard and to join our efforts, visit our Web site at www.MichiganPharmacists.org/advocacy/grassroots.