House Bill 4276, sponsored by Rep. Alabas Farhat, D-Dearborn, and endorsed by the Michigan Pharmacists Association (MPA), was signed by Gov. Gretchen Whitmer on Dec. 7, 2023. The new legislation requires that Medicaid-managed care organizations (MCO) utilizing a pharmacy benefit manager (PBM) reimburse pharmacies with seven or fewer retail outlets for drug products at the lesser of:

  • the National Average Drug Acquisition Cost (NADAC) plus a professional dispensing fee;
  • the Wholesale Acquisition Cost (WAC) plus a professional dispensing fee;
  • or the pharmacy’s usual and customary fee

“This is a major win for independent pharmacy in the state of Michigan,” said Eric Roath, MPA director of government affairs. “MPA has successfully advocated year-after-year to have these dispensing fee protections included in the state budget. To have them codified into the Social Welfare Act is a huge step forward.”

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