MI HB5842

Creates the Prescription Drug Affordability Board (5 members appointed by governor) to review and establish upper payment limits for high-cost prescription drugs in Michigan.

Board identifies prescription drug products for review based on criteria including: brand name drugs with launch costs of $30,000+ annually, price increases of $3,000+ in 12 months, biosimilars not 15% cheaper than reference biologics, and generic drugs costing $100+ for 30-day supply with 200%+ price increases.

Board may establish upper payment limits on prescription drugs after determining they create affordability challenges for Michigan health care systems or patients; limits take effect no sooner than 6 months after establishment.

Prohibits prescription drug purchasers and third-party payers from purchasing, billing, or reimbursing drugs above established upper payment limits; independent pharmacies must be reimbursed at least at the upper payment limit amount.

Creates 21-member Prescription Drug Affordability Stakeholder Council to advise the board; establishes prescription drug affordability fund; requires annual reports to legislature on drug price trends and review results.