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Rep. Leitner urges prioritizing generics in Medicaid to cut drug costs; fiscal office warns rebate trade-offs
Summary
Representative Leitner urged committee approval of HB 4839 to prioritize generics and biosimilars in Medicaid, citing sample savings; House Fiscal said Michigan pays roughly $4.1 billion in pharmacy costs with $2.4 billion in rebates and estimated gross savings of $50—00 million but noted lost rebates could reduce net savings.
Representative Matt Leitner told the House Appropriations Committee that House Bill 4839 would require Michigan's Medicaid program to prioritize generic drugs and biosimilars over brand-name versions, while preserving prescriber authority to order "dispense as written" when medically necessary.
"The goal is to enhance cost effectiveness, maintain clinical quality, and support sustainable health care delivery," Leitner said, arguing that even a small sample of six drugs used by patients with asthma, heart failure and diabetes could yield roughly $41 million in savings.
Kevin Korster of House Fiscal…
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