HB 5691 Summary

• Requires prescription drug manufacturers to notify registered qualified purchasers at least 60 days before implementing price increases of 12% or more on drugs costing over $40 per course of treatment, effective October 1, 2018.

• Mandates manufacturers report quarterly to a new Drug Consumer Protection Commission detailing price increase justifications, financial factors, patent status, acquisition history, and sales volume for drugs with qualifying price increases.

• Creates a 13-member Drug Consumer Protection Commission appointed by the governor to review reported price increases and new drug pricing, determine if prices are excessive or unconscionable, and refer findings to the Attorney General for investigation under the Michigan Consumer Protection Act.

• Requires the Commission to publicly post reported pricing information within 60 days, with exceptions for confidential or proprietary information that could cause competitive harm.

• Imposes $100,000 per day administrative fines on manufacturers failing to provide required notices or reports; takes effect 90 days after enactment and is contingent on passage of HB 5690.