Reps. Gina Johnsen (R-Lake Odessa) and Alabas Farhat (D-Dearborn) are advocating for House Bill 5350, which aims to support hospital community need programs over pharmaceutical profits. They are among the 19 bipartisan co-sponsors of the bill.
The proposed legislation seeks to protect healthcare cost-savings obtained by hospitals through the federal 340B drug pricing program. This program allows safety net hospitals and community care organizations to purchase outpatient prescription drugs at discounted rates. Pharmaceutical manufacturers have attempted to impose limits on hospitals, which have been deemed unlawful by federal agencies.
“During the final days of session, we have the opportunity to prioritize people’s needs ahead of big pharma’s profits,” said Farhat. “This bipartisan plan has the potential to expand and protect life-saving services in hospitals across our state. Services such as cancer care, prevention, and treatment.”
Johnsen highlighted the importance of the cost savings offered by 340B for small rural hospitals in her area. “Protecting this program is crucial to maintaining access to care for my constituents. We will lose services if it goes away, and rural Michigan cannot afford that.”
The 340B program, established by Congress in 1992, does not depend on taxpayer funding and has supported vulnerable patients for over three decades. Debra Guido-Allen, president of Corewell Health Dearborn Hospital, emphasized its significance: “We thank Rep. Farhat for being a champion for our patients. This legislation will have a meaningful impact for Dearborn and all of Michigan.” She added that as a safety net hospital, affordable medicines provided through the 340B program are essential amid rising drug prices.
Margaret Dimond from University of Michigan Health also supports HB 5350: “We appreciate Rep. Johnsen championing this cause and protecting rural healthcare in our community.”
Pharmaceutical drugs remain a rapidly growing expense for hospitals. The median price of new drugs reached $300,000 recently—four times higher than the median annual household income in the U.S., with costs rising significantly between 2022 and 2023.
HB 5350 awaits consideration in the House Insurance and Financial Services Committee. The bill sponsors urge Michigan citizens to contact their state officials in support of prioritizing community-based healthcare services.
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