HOUSE BILL No. 4702

 

 

June 11, 2019, Introduced by Reps. Chirkun and Cambensy and referred to the Committee on Government Operations.

 

     A bill to amend 1976 PA 331, entitled

 

"Michigan consumer protection act,"

 

(MCL 445.901 to 445.922) by adding section 9b; and to repeal acts

 

and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9b. (1) The attorney general shall investigate pricing of

 

prescription insulin drugs made available to residents of this

 

state to ensure adequate consumer protections in pricing of

 

prescription insulin drugs and whether additional consumer

 

protections are needed.

 

     (2) As part of the investigation described in subsection (1),

 

the attorney general shall gather, compile, and analyze information

 

concerning the organization, business practices, pricing


information, data, reports, or other information that the attorney

 

general finds necessary to fulfill the requirements of this section

 

from persons engaged in the manufacture or sale of prescription

 

insulin drugs. The attorney general shall also consider any

 

publicly available information related to drug pricing.

 

     (3) If necessary to fulfill the reporting requirements of this

 

section, subject to subsection (4), the attorney general may issue

 

an administrative subpoena that requires any of the following to

 

furnish material, answers, data, or other information that is

 

relevant to the investigation:

 

     (a) Another state officer, department, or agency.

 

     (b) A pharmacy benefits manager or other carrier.

 

     (c) A manufacturer of prescription insulin drugs that are made

 

available in this state.

 

     (4) A person is not required to provide or disclose trade

 

secrets in connection with an investigation under subsection (1).

 

     (5) By November 1, 2020, the attorney general shall issue and

 

make available to the public a report detailing his or her findings

 

from the investigation conducted under this section. The attorney

 

general shall present the report to the governor, the director of

 

the department of insurance and financial services, and the

 

standing committees of the senate and house of representatives with

 

primary responsibility for insurance and health policy issues. The

 

report must include all of the following:

 

     (a) A summary of insulin pricing practices and variables that

 

contribute to pricing of health coverage plans.

 

     (b) Public policy recommendations to control and prevent


overpricing of prescription insulin drugs made available to

 

residents of this state.

 

     (c) Any recommendations for amendments to this act to prevent

 

unfair, unconscionable, or deceptive methods, acts, or practices in

 

the conduct of trade or commerce related to the sale of

 

prescription insulin drugs, including the pricing of those drugs.

 

     (d) Any other information the attorney general finds necessary

 

to include.

 

     (6) As used in this section:

 

     (a) "Carrier" means that term as defined in section 3701 of

 

the insurance code of 1956, 1956 PA 218, MCL 500.3701.

 

     (b) "Prescription insulin drug" means a prescription drug, as

 

that term is defined in section 17708 of the public health code,

 

1978 PA 368, MCL 333.17708, that contains insulin and is used to

 

treat diabetes.

 

     (c) "Trade secret" means that term as defined in section 2 of

 

the uniform trade secrets act, 1998 PA 448, MCL 445.1902.

 

     Enacting section 1. Section 9b of the Michigan consumer

 

protection act, 1976 PA 331, MCL 445.909b, is repealed effective

 

December 1, 2020.

 

     Enacting section 2. This amendatory act takes effect 90 days

 

after the date it is enacted into law.