Michigan Senate Bill SB0005

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

Human services: medical services; compliance with the prescription drug cost and affordability review act; require. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 109o.TIE BAR WITH: SB 0003'25

Summary

Senate Bill 5 would amend Michigan’s Social Welfare Act to require the state’s medical assistance program, subject to federal law, to comply with Section 12 of the Prescription Drug Cost and Affordability Review Act. In practical terms, the bill links Medicaid policy to the state’s prescription drug affordability framework, directing the medical assistance program to follow whatever requirements Section 12 imposes on drug cost review and affordability oversight. The bill is tied to Senate Bill 3 and would not take effect unless that companion bill becomes law. This tie-bar indicates the two measures are intended to operate together as part of a broader prescription drug cost policy package. Because the bill amends the Social Welfare Act, it would affect the administration of Michigan’s medical assistance program and the agencies responsible for Medicaid compliance and prescription drug purchasing or oversight.

Impact

SB 5 would add a new section to the Social Welfare Act requiring Michigan’s medical assistance program to conform to Section 12 of the Prescription Drug Cost and Affordability Review Act, to the extent allowed by federal law. This would create a statutory obligation for Medicaid-related operations to align with the state’s prescription drug cost review and affordability requirements, potentially affecting program administration, drug pricing oversight, and related state health policy implementation. The bill’s effect is contingent on enactment of SB 3, so it would only alter state law if the companion measure is also enacted.

Sentiment

The bill appears to have received generally favorable consideration in the Senate, advancing out of committee on a 5-2 vote and passing third reading 20-15. Those votes suggest support, but not broad consensus, with a meaningful minority opposed. No committee transcript was provided, so the available record shows legislative support through passage, but also some division over the policy.

Contention

The main point of contention appears to be whether and how Michigan should require its medical assistance program to comply with the prescription drug affordability review framework. Opposition likely centers on concerns about state control, administrative burden, or the scope of prescription drug regulation within Medicaid, while supporters likely view the bill as a way to strengthen drug affordability and align public coverage with cost-review standards. The tie-bar to SB 3 is also notable, because it makes the bill dependent on another measure and suggests the policy package was intended to move together rather than independently.