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Senate passes bill to amend Public Health Code after debate over 340B transparency (SB 94)
Summary
The Michigan Senate approved Senate Bill 94, a measure to amend the Public Health Code, on a 33-3-1 vote after debate centered on transparency and accountability in the federal 340B drug-pricing program.
The Michigan State Senate passed Senate Bill 94, a bill to amend the Public Health Code, on final passage by a vote of 33-3 with one member excused.
Senator Santana spoke in opposition to the bill on the Senate floor, saying the measure does not provide sufficient transparency or guardrails to ensure 340B savings benefit low-income patients. "This bill fails to address the real concerns about transparency, accountability, and most critically ensuring that this program serves the patients who need it most," Senator Santana said.
The senator framed 340B as a federal program created to provide discounted medications to hospitals and clinics that serve low-income patients, and argued the program has shifted away from that original mission. "There are no guardrails ensuring that the revenue generated is actually used to help the underserved," Santana said, adding that some hospitals reinvest savings into patient care while "too many others do not."
Santana cited a state report example, saying Minnesota found 340B providers generated at least $630,000,000 in net revenue in a single year and that a small share of large systems took a disproportionate share of reported revenue. "Without the level of transparency, we are not ensuring that this program is working as intended," Santana said.
Senate floor procedure records show there were no amendments pending to SB 94 before the vote. The secretary announced the tally after the roll was closed: 33 aye votes, 3 no votes and 1 excused. A majority of the members elected and serving having voted, the bill was declared passed.
Senator Santana urged colleagues to strengthen the bill in later consideration, saying it did not require covered entities to disclose how much revenue they generate from 340B, how much is paid to third parties, or how much is reinvested in patient care. "It does not ensure that 340B dollars go towards charity care or other critical services that underserved patients need," Santana said.
The transcript does not record any amendments or a subsequent formal instruction to staff about revising SB 94 on the floor. The legislative record in this session shows the bill advanced and was passed; additional steps such as enrollment to the governor or conference with the House are not recorded in the transcript.
