HB 5109 Summary

• Adds new Section 3j to the Michigan Consumer Protection Act prohibiting prescription drug manufacturers from charging excessive prices or unconscionable increases in wholesale acquisition costs.

• Requires the Attorney General to investigate allegations of excessive pricing or unconscionable cost increases referred by the drug consumer protection commission created under the Public Health Code.

• Defines "unconscionable increase" as a price increase that is excessive and unjustified by production costs or expansion of drug access, or that eliminates consumers' meaningful choice due to health importance and insufficient market competition.

• Allows the Attorney General to bring class action lawsuits for damages, with settlement proceeds deposited in a restricted fund for consumer refunds in Michigan.

• Takes effect 90 days after enactment, contingent upon passage of a related bill (HB 5108 or Senate Bill number to be determined).