Senate-Backed 340B Reform Advances in Michigan as Advocates Demand Equity, Access, and Transparency

June 10, 2025

Michigan's 340B Drug Pricing Program is at a critical juncture with Senate Bills 94 and 95 awaiting House approval, which would prevent manufacturers from obstructing access to discounted medications and link hospital debt collection to transparency requirements. Healthcare organizations like Michigan Health & Hospital Association, Michigan Medicine, Trinity Health Michigan, and Henry Ford Health strongly support the program, emphasizing how 340B savings fund vital community services including mobile clinics, mental health programs, and medication access for underserved populations. However, pharmaceutical manufacturers and business groups like PhRMA and Michigan Health Purchasers Coalition oppose aspects of the legislation, arguing that savings don't always reach patients directly and may increase costs for employers.

Who is affected

Low-income and uninsured patients who could benefit from discounted medications
Cancer patients, rural communities, and underserved populations who receive services funded by 340B savings
Black families and communities facing health disparities
Employers and working families potentially impacted by prescription cost increases
Healthcare providers serving vulnerable populations, including rural health clinics
Patients with chronic diseases requiring ongoing medication management

What action is being taken

Senate Bills 94 and 95 have passed the Senate and are currently awaiting approval in the House
Healthcare organizations are using 340B funds to deliver discounted outpatient pharmaceuticals, expand vaccine access, and support community initiatives
Blackdoctor.org is advocating nationally for transparency in the 340B program to close racial health disparities
The U.S. Department of Health and Human Services submitted new "340B rebate guidance" to the Office of Management and Budget on June 2, 2025
Michigan Department of Health and Human Services revised its STI/HIV policy manual on May 7, 2025, strengthening audit and program procedures

Why it matters

The 340B program provides essential funding for critical healthcare services in underserved communities
Transparency requirements would ensure accountability in how hospitals use program savings
The legislation could help close racial health disparities by ensuring savings reach Black families
Without proper implementation, vulnerable patients might miss out on affordable medications
The program supports various community health initiatives beyond just medication discounts
The outcome affects healthcare affordability and access for Michigan's most vulnerable populations

What's next

The Michigan House must vote on Senate Bills 94 and 95
If passed, the governor must sign the bills into law
If enacted, 340B entities would need to report annually on usage, community impact, and audits starting July 1, 2026
Manufacturers would be required to report on high-cost drugs exceeding a 15% price increase
Federal changes to the program could impact state-level implementation
Local healthcare organizations must transform their intentions into interventions to benefit communities

Read full article from source: Michigan Chronicle