FOR IMMEDIATE RELEASE
Dec. 7, 2023
Association of Affiliated Pharmacies and Apothecaries (AAPA) Flexes Political Muscle in Lansing, Launches Michigan Health Access Alliance PAC
Signing of House Bill 4276 is a victory for patients across Michigan
LANSING, MI - Today Governor Gretchen Whitmer signed House Bill 4276, legislation that will increase transparency and lower costs in a victory for patients across the state. This legislation had broad bipartisan support in the legislature and was championed by independent pharmacies and patients alike, with the AAPA and newly-launched Michigan Health Access Alliance PAC leading the way in Lansing.
“It took a lot of hard work getting this passed and it was truly a team effort,” said Sammy Salem, Executive Board Member for AAPA. “I’d like to thank the AAPA board of directors for their tireless advocacy on behalf of their members, to Rep. Alabas Farhat for his unwavering support and to Gov. Whitmer for signing this critical legislation which will increase transparency and lower costs for all Michiganders.”
This legislation was designed to keep mom-and-pop pharmacies open in underserved communities across Michigan - preventing health care “deserts”. AAPA members are at the forefront of providing quality, affordable patient care. When patients have questions and need immediate care, our members are there to serve.
“This is a major win for Michiganders everywhere who rely on their community pharmacy for low cost, lifesaving prescription drugs," said Rep. Alabas Farhat. "Michigan will be a leader in making sure independent pharmacies are compensated fairly, ensuring access to care across our state.“
Specifically, the law requires Medicaid-managed care organizations (MCOs) using a pharmacy benefit manager (PBM) to reimburse small, local pharmacies at the lesser of the National Average Drug Acquisition Cost (NADAC) plus a professional dispensing fee, the Wholesale Acquisition Cost (WAC) plus a professional dispensing fee or the pharmacy’s usual and customary fee. It also requires PBMs to disclose its administrative fee as a percentage of the professional dispensing costs to the Michigan Department of Health and Human Services - increasing transparency. Finally, it prohibits PBMs from implementing new administrative fees and prevents MCOs from dropping pharmacies from their network on the basis of reimbursement rate.
“By increasing transparency and limiting administrative fees, this legislation saves Michiganders money,” said Sammy Salem, Executive Board Member for AAPA. “The Michigan Health Access Alliance PAC is just getting started in its work to protect local pharmacies in local communities - and this legislation is a victory for patients across Michigan.”
Launched in late 2023, the Michigan Health Access Alliance PAC (MHAA-PAC) is the voice of patients and independent pharmacies in Michigan. Their mission is to increase access to patient-centric care for all Michigan residents. They are dedicated to improving outcomes and providing the resources that patients need most.
This critical legislation was supported by the Association of Affiliated Pharmacies and Apothecaries (AAPA), Michigan Pharmacists Association, Independent Pharmacy Cooperative, National Community Pharmacists Association, Michigan Nurses Association, Arab American Pharmacist Association, Michigan Health and Hospital Association and others.
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