On January 8, 2025, Michigan Senator Darrin Camilleri introduced Senate Bill No. 3, aimed at addressing the rising costs of prescription drugs in the state. The bill has been referred to the Committee on Finance, Insurance, and Consumer Protection for further consideration.

The primary objective of Senate Bill No. 3 is to establish a comprehensive framework for reviewing the costs and affordability of certain prescription drug products. Key provisions include the creation of a Prescription Drug Pricing Board and a Prescription Drug Affordability Stakeholder Council, which will be tasked with overseeing the pricing of drugs and ensuring that they remain accessible to Michigan residents. The bill also proposes the establishment of upper payment limits for specific prescription drugs, along with remedies for violations of these limits.

In its current form, the bill defines critical terms such as "biologic," "biosimilar," and "brand-name drug," laying the groundwork for regulatory measures. The legislation seeks to empower state governmental officers and entities to enforce these new standards, thereby enhancing oversight of drug pricing practices.

The introduction of Senate Bill No. 3 has sparked discussions among lawmakers and stakeholders regarding its potential impact on the pharmaceutical industry and healthcare costs. Proponents argue that the bill is a necessary step toward curbing exorbitant drug prices and improving affordability for consumers. However, some industry representatives have expressed concerns about the implications of price controls, fearing that they may stifle innovation and limit access to new treatments.

As the bill progresses through the legislative process, it is expected to undergo further scrutiny and possible amendments. Experts suggest that if enacted, Senate Bill No. 3 could significantly alter the landscape of prescription drug pricing in Michigan, potentially serving as a model for other states grappling with similar issues.

The next steps for the bill will involve hearings and discussions within the Committee on Finance, Insurance, and Consumer Protection, where lawmakers will evaluate its provisions and consider input from various stakeholders. The outcome of these deliberations will be crucial in determining the future of prescription drug affordability in Michigan.