A new package of bills in the state house are aimed at lowering healthcare costs for state residents.
The bills address a litany of issues, from capping co-pay costs to creating a program to import pharmaceutical drugs from Canada.
Democratic State Representative Darrin Camilleri introduced the legislation. He said pharmaceutical drug prices are artificially high in the state.
“Let’s inject some competition from someone, Canada, who we know that they have lower costs and we can bring those costs to Michigan residents as well,” he said.
The drugs would have to be FDA approved. Camilleri said Canadian pharmaceuticals are 30% lower on average than their US equivalent.
Camilleri said Michigan can’t conduct Medicare bargaining or do much to regulate national drug companies so this is a good option for lowering costs.
“We know that Michiganders are already doing this. They are risking so much and spending so much time and effort to seek out that lower cost care,” he said. “I believe we should just make it easier.”
The legislation is similar to a republican introduced billthat would also set up an importation program. Camilleri said his bill is more comprehensive and would cut out much of the federal clearance required under that legislation.
He said there is clearly bipartisan interest and there is an opportunity for compromise on this legislation.
The Pharmaceutical Research and Manufacturers of America, a lobbying group representing the pharmaceutical industry, has previously called importation plans “schemes.” They say the importation plans jeopardize the “integrity of the U.S. prescription drug supply chain and the safety of Michigan’s patients.”
A spokesperson for the group said in a written statement that while "we welcome the opportunity to work with legislators to ensure that Michanders can afford their medicines... we are still reviewing the proposals announced as part of House Democrats' HOPE agenda."
Camilleri said pharmaceutical companies will always care about their bottom line and making profits.
“They know they have a rigged system here in the United States where they make the most profit off of our people, off of our sickness,” he said.
Another bill in the package would cap co-pays at $5. Camilleri said the healthcare system has loopholes that saddle patients with back-end costs.
“So for example when you go to the doctor you have health insurance and you assume it’s going to cover the bare minimum,” he said. “Sometimes you show up to the doctors office and it ends up being a $50 or $100 copay. That just adds more stress to an already financially strapped family.”
Democratic State Representative Laurie Pohutsky introduced legislation to prohibit drug companies from charging “excessive prices.” She said it would require companies to account for why a drug price has increased.
“So if they can demonstrate that this has something to do with research then that is fine,” she said. “But if it turns out to just be price gouging then they would face a penalty and an investigation by the AG and things like that.”
Pohutsky said the goal of the legislation is to make sure that Michigan residents are being protected and have access to affordable healthcare.
Note: this story was updated to include a more recent comment from Pharmaceutical and Research and Manufacturers of America.