This bill aims to enhance the regulation of drug pricing and the federal 340B program in Michigan by establishing reporting requirements and prescribing conduct for manufacturers, wholesalers, and 340B entities. It defines key terms related to biological drug products, the 340B program, and the roles of various stakeholders, including hospitals and pharmacies. Notably, the bill prohibits manufacturers and wholesalers from restricting the acquisition of 340B drugs by 340B entities and requires manufacturers to report on prescription drugs that exceed a specified cost and have seen significant price increases. The information collected will be made publicly accessible, promoting transparency in drug pricing.

Additionally, the bill mandates that hospitals receiving savings from the 340B program invest those savings into patient services or community benefit programs. It outlines the reporting obligations for hospitals regarding their participation in the 340B program, including acquisition costs, payments received, and community investments. Violations of the act may result in civil fines, and the Department of Licensing and Regulatory Affairs is empowered to promulgate rules to implement the act effectively.