Michigan Senate Bill SB0004

Michigan 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Report Pass: 4/24/25
• Refer: 4/24/25
• Engrossed: 4/24/25

Caption

Insurance: health insurers; compliance with the prescription drug cost and affordability review act; require. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406tt. TIE BAR WITH: SB 0003'25

Summary

Senate Bill 4 would amend Michigan’s Insurance Code to require insurers that issue, deliver, or renew health insurance policies with prescription drug coverage in the state to comply with section 12 of the Prescription Drug Cost and Affordability Review Act. In practical terms, the bill extends the requirements of that separate prescription drug cost law into the health insurance market by making compliance mandatory for affected insurers. The bill is tied to Senate Bill 3 of the 103rd Legislature and would not take effect unless that companion bill becomes law. This makes SB 4 part of a linked legislative package focused on prescription drug pricing and affordability oversight. The measure applies to health insurance policies that include prescription drug benefits, so its reach is limited to insurers operating in that segment of the market.

Impact

SB 4 would add a new section to the Insurance Code, creating a statutory obligation for insurers to follow section 12 of the Prescription Drug Cost and Affordability Review Act when providing prescription drug coverage. The bill would therefore affect health insurers, policy issuers, and renewals in Michigan, and it would indirectly support enforcement of the state’s prescription drug affordability framework by embedding it in insurance law. Because it is tie-barred to SB 3, its legal effect depends on enactment of the companion bill.

Sentiment

The bill appears to have received mixed but ultimately favorable treatment in the Senate. It was reported favorably out of committee by a 5-2 vote and then passed the Senate on third reading by a narrower 20-15 vote, indicating support from a majority but notable opposition. The voting pattern suggests the bill was viewed positively by proponents of prescription drug affordability measures, while still drawing significant concern from some senators.

Contention

The main point of contention is likely the policy choice to require insurers to comply with the prescription drug cost and affordability review framework, which may be seen by opponents as an added regulatory burden on insurers or an expansion of state oversight of drug pricing. Supporters likely view the bill as a consumer-protection measure aimed at lowering prescription drug costs and improving affordability. The tie-bar to SB 3 is also notable, because the bill cannot take effect on its own and is part of a broader package, which may have influenced support and opposition.