Michigan House Bill HB4890

Michigan 2023-2024 Regular Session

• Introduced: 7/18/23
• Refer: 7/18/23
• Report Pass: 5/22/24

Caption

Health: pharmaceuticals; insulin production program; establish. Amends sec. 9 of 1984 PA 270 (MCL 125.2009) & adds ch. 8F.

Impact

This bill will amend the Michigan Strategic Fund Act to incorporate provisions that enhance healthcare accessibility through the establishment of the insulin production program. It positions the state to become a self-sufficient insulin producer, reducing reliance on fluctuating market prices and potentially lowering costs for consumers. By enabling state-operated production of insulin, this change aims to improve health outcomes for diabetic residents by increasing availability and affordability of essential medication, particularly in a context where many cannot access necessary treatments due to financial barriers.

Summary

House Bill 4890 establishes an insulin production program in the state of Michigan to address the rising costs of insulin medications, especially long-acting insulin. The bill facilitates the creation of partnerships with private sector contractors who will establish insulin manufacturing facilities within the state. Furthermore, the state will own the real estate associated with these facilities, while the contractors will manage operations. The goal is to ensure that residents have access to affordable insulin through this strategic initiative aimed at mitigating high medication costs due to market fluctuations.

Contention

Notable points of contention within the discussions around HB4890 include concerns about the financial commitments associated with establishing these facilities, particularly the grant provisions for contractors. Critics worry that the bill may become an economic burden if the production output does not meet projected demands or if contractors fail to fulfill their agreements. Additionally, the stipulations regarding state ownership of the facilities raise questions about the long-term implications for taxpayer dollars and the management efficiency of state-run pharmaceutical production.