LANSING, Mich., Feb. 23, 2022 — Today, Gov. Gretchen Whitmer signed into law House Bill 4351. The bill, sponsored by state Rep. Karen Whitsett (D-Detroit) and part of a bipartisan package, prohibits a pharmacy benefit manager (PBM) from reimbursing federally designated 340B pharmacies at a lower rate than pharmacies that are not 340B entities for the same drug. A 340B pharmacy refers to those that have pricing agreements with the Department of Health and Human Services so that they may take Medicaid and Medicare Part B. However, the medications must be provided at a reduced price. 


“By prohibiting a pharmacy benefit manager from reimbursing the pharmacies that serve economically disadvantaged Michiganders at a lower rate than others, we’re really ensuring health care justice and equity,” Whitsett said. “This is about making sure that everyone in Michigan, no matter their income level, can access the medication they need.”


Other states have enacted similar laws to prohibit discrimination against a covered entity or one of their contract pharmacies. Trinity Health, the Henry Ford Health System, the Michigan Health and Hospital Association and the National MS Society have all expressed support for the bill.