PHARMACY BENEFIT MGR., 340B DRUG                                                                                                                   S.B. 1088:

                                                                                                                                                                SUMMARY OF DISCHARGED BILL

Senate Bill 1088 (as discharged)

Sponsor:   Senator Curtis S. VanderWall

Committee:   Health Policy and Human Services (discharged)

CONTENT

The bill would amend the Third Party Administrator Act to delete an exemption for claims for payment by the Medicaid program from a provision prohibiting a pharmacy benefit manager from requiring a claim for a drug to include a modifier or otherwise indicating that a drug is a 340B drug.

Under the Act, a carrier or other third party, or a third party administrator that is a pharmacy benefit manager, may not, except as required by law to prevent a duplicate rebate, require a claim for a drug to include a modifier or otherwise to indicate that the drug is a 340B drug.

The prohibition does not apply if the claim is for payment, directly or indirectly, by the Medicaid program. The bill would delete this provision.  

MCL 550.926                                                                                                         Legislative Analyst:   Stephen P. Jackson

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:   11-29-22                                                                                                   Fiscal Analyst:   Jonah Houtz

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.