Pharmacy Benefit Manager Legislation Signed, Amended Right to Try Act Passes House

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capitol buildingImportant pharmacy benefit manager legislation was signed by Gov. Gretchen Whitmer the week of Feb. 21 and the Michigan Legislature took up several pieces of legislation that impact hospitals. The Senate Health Policy and Human Services Committee heard testimony on extending temporary licensure for speech-language pathologists and creating a new statewide rare disease advisory council. In the House of Representatives, action was taken on legislation to amend the Right to Try Act, regulate the sale of kratom and make changes to the Medicaid presumptive eligibility process.

The Governor signed House Bill (HB) 4348 into law, which would regulate and establish licensure for pharmacy benefit managers in Michigan. HB 4348 was introduced by Rep. Julie Calley (R-Portland) and was supported by the MHA to help slow the rising cost of prescription medications.

Testimony was taken in the Senate Health Policy and Human Services Committee on Senate Bill (SB) 811, which would extend temporary licensure for speech-language pathologists. Introduced by Sen. Curt VanderWall (R-Ludington), the bill would extend the allowable timeframe for a temporary speech-language pathologist license from 12 to 24 months and allow for six month extensions to that temporary license so long as the licensee remain in good standing. No vote was held and the MHA has not yet taken a position on SB 811.

The Senate Health Policy and Human Services committee also took testimony on a bill to establish a rare disease advisory council in Michigan. HB 4654 was introduced by Rep. Cara Clemente (D-Lincoln Park) and is supported by the MHA. The council would include two seats for hospital representatives, one of which would be reserved for a hospital that also conducts research. No vote was taken on HB 4654.

The House of Representatives voted in support of HB 5637, which would allow physicians to prescribe certain off-label medications to patients terminally ill with COVID-19. The bill amends the Right to Try Act, which is intended to give patients access to medications that are still in trial with the Food and Drug Administration for the patient’s condition or already approved to treat another diagnosis. As currently written, the medications could be prescribed only by the patient’s treating physician and the bill would not require health facilities to offer new medications or services that they do not already provide. The MHA has not taken a position on HB 5637, which now heads to the Senate for further consideration.

HBs 5462 and 5463 were reported from the House Committee on Families, Children and Seniors. Introduced by Reps. Pat Outman (R-Six Lakes) and Steve Johnson (R-Wayland), the bills would make changes to the Medicaid presumptive eligibility process by requiring the Michigan Department of Health and Human Services (MDHHS) to consider additional data in determinations. Some of the additional considerations include quarterly reviews of gambling history and death records. Under the current language, hospitals would be required to notify the MDHHS within five days after a determination was made and notify the applicant in writing that they must notify the MDHHS before the last day of the month to continue eligibility. The MHA is opposed to the bills and will continue to monitor any movement.

The House Regulatory Reform Committee took testimony on HB 5477, which would regulate the sale of kratom in Michigan. Kratom is a substance of concern with opiate-like effects that has no approved medical use in the United States. The MHA’s Legislative Policy Panel has previously taken a position supporting making kratom a Schedule I narcotic. HB 5477 would require new safety warnings on kratom substances sold in Michigan and the MHA has not taken a position on the bill.

Questions on state legislation related to healthcare may be directed to Adam Carlson at the MHA.

Supplemental Budget Signed, Pharmacy Benefit Manager Legislation Passed

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capitol buildingGov. Gretchen Whitmer Feb. 16 signed House Bill (HB) 5523, a $1.2 billion supplemental funding bill that focuses on keeping kids learning in-person and bolstering the state’s healthcare workforce. This legislation directs $300 million to healthcare providers for recruitment, retention and training purposes, $225 million of which will be specifically for acute-care and behavioral health hospitals.

The MHA will act as fiduciary for the hospital funds and is working with the state to obtain the $225 million for distribution as soon as possible. The MHA will update hospitals in the coming weeks on specific allocations and distribution. Critical access hospitals and small and rural facilities will receive a portion of the funds, and a minimum amount has been set that all hospitals will receive.

The Senate passed HB 4348, which would regulate and establish licensure for Pharmacy Benefit Managers in Michigan. HB 4348 was introduced by Rep. Julie Calley (R-Portland) and is supported by the MHA to help slow the rising cost of prescription medications. Passed in the Senate Feb. 15, the House concurred with the Senate version Feb. 16, and the bill will now go to the governor to sign into law.

Any questions on state legislation related to healthcare may be directed to Adam Carlson at the MHA.

Michigan Legislature Addresses Multiple Healthcare Bills

The Michigan Legislature took up several bills impacting hospitals during the week Feb. 7. Some of the covered topics included legislation to expand the essential health provider loan repayment program, make changes to nonopioid directive forms, new regulation for pharmacy benefit managers (PBMs) and transparency bills for the Certificate of Need (CON) Commission.

The House Health Policy Committee reported Senate Bills (SBs) 246 and 435 to the House floor. Introduced by Sens. Curt VanderWall (R-Ludington) and Mike MacDonald (R-Macomb Township), the two bills would expand the essential health provider loan repayment program. SB 246 would raise the maximum allowable loan repayment from $200,000 to $300,000 for providers who agree to serve in a health resource shortage area for two to 10 years. SB 435 would expand the program to allow mental health professionals working in a health resource shortage area to qualify for the loan repayment program. The MHA supports both bills, which were passed in the full House and now go to the governor’s desk for signature.

The approved version of SB 435 includes an MHA-proposed amendment to extend the Physician Licensure Compact (PLC) law that was set to expire in March. The PLC is an important recruitment and retention tool for Michigan hospitals that allows physicians in good standing to more easily obtain licenses to practice medicine in multiple states. The MHA will continue to advocate for the governor to quickly sign SBs 246 and 435 into law and will keep members apprised of any action.

The House Health Policy Committee also reported to the House floor House Bill (HB) 5637, which would allow physicians to prescribe certain off-label medications to patients terminally ill with COVID-19. The bill amends the “Right to Try Act,” which is intended to give patients access to medications that are still in trial at the Food and Drug Administration for their condition or already approved to treat another diagnosis. As currently written, the medications could be prescribed only by the patient’s treating physician and the bill would not require health facilities to offer new medications or services that they do not already provide. The MHA has not taken a position on HB 5637.

The full House of Representatives approved and moved to the Senate four Certificate of Need (CON) bills that make no substantive changes to covered services. HBs 5074, 5075, 5076 and 5077 would require CON Commission reports and minutes to be posted online pursuant to certain deadlines and would require the Legislature’s Joint Legislative Committee, which oversees the CON Commission, to meet annually. The MHA does not have a position on the bills and has confirmed that the Michigan Department of Health and Human Services does not expect the bills to hinder the success of the program.

In the Senate Health Policy and Human Services Committee, members reported HB 4348, which would regulate and establish licensure for PBMs in Michigan. HB 4348 was introduced by Rep. Julie Calley (R-Portland) and is supported by the MHA to help slow the rising cost of prescription medications. The bill now moves to the Senate floor for consideration.

The Senate Health Policy and Human Services Committee also took testimony on HB 5261, an MHA-supported bill introduced by Rep. Abdullah Hammoud (D-Dearborn). HB 5261 would create specific exemptions for providers to administer opioids to a patient who has an active nonopioid directive form when the opioids are provided during a surgical operation or if the provider deems them medically necessary. No votes were taken on the bill.

Questions on state legislation related to healthcare may be directed to Adam Carlson at the MHA.