HB 5937 Summary

• Requires drug manufacturers to file annual reports with the Michigan Department of Insurance and Financial Services beginning January 1, 2022, containing wholesale acquisition costs, rebates paid to pharmacy benefit managers, fees paid to pharmacy benefit managers, and information on exclusive contracts and financial incentives.

• Mandates drug manufacturers report research and development costs, manufacturing and distribution costs, and marketing costs for each prescription drug they produce.

• Requires drug manufacturers to notify the department within 30 days when increasing the wholesale acquisition cost of a qualified prescription drug by 10% or more in one year or 20% or more over three years, including research and development costs and FDA approval information.

• Requires notification to the department within 3 calendar days when introducing a new prescription drug to the market at a cost exceeding the Medicare Part D specialty drug threshold, including information on FDA designations and acquisition costs.

• Establishes civil penalties of up to $100,000 per month for violations and exempts reported information from public disclosure under the Freedom of Information Act.