The Economic Alliance for Michigan (EAM) applauds the passage of bipartisan healthcare reform included in the Consolidated Appropriations Act of 2026, marking a historic step forward in pharmacy benefit manager (PBM) transparency and accountability.

The legislation represents a major advancement in employer-driven healthcare reform and a long-awaited victory for the millions of hard-working Americans who rely on employer-sponsored coverage. For years, employers have faced rising prescription drug costs without access to critical information about PBM pricing practices, rebates, and formulary decisions. This reform begins to correct that imbalance.

“This bipartisan legislation is a turning point for employers who have long demanded greater transparency and fairness in the prescription drug marketplace,” said Bret Jackson, EAM President and CEO. “Michigan employers work hard to provide quality healthcare for their employees, and these reforms help ensure healthcare dollars are spent responsibly and savings flow back to workers and families – not hidden middlemen.”

Key Reforms Benefiting Employers and Plan Sponsors

The new law delivers several critical protections for employers and other plan sponsors, including:

• Semi-annual PBM reporting to employers on drug spending, rebates, spread pricing, formulary rationale, and benefit design
• Full pass-through of all rebates and discounts from PBMs to employers and plan sponsors
• Increased transparency in the generic drug and biosimilar marketplace

In addition to PBM reforms, the legislation requires off-campus hospital departments to obtain their own unique National Provider Identifiers (NPIs), a key step toward implementing site-neutral payments and strengthening hospital accountability for excessive pricing.

What Comes Next

Attention now turns to federal implementation. The U.S. Department of Health and Human Services is expected to issue regulations detailing reporting requirements, compliance timelines, and enforcement standards. EAM will continue working alongside the National Alliance of Healthcare Purchaser Coalitions, other business coalitions and their employer and purchaser members to ensure the reforms are implemented effectively and deliver real savings for Michigan businesses and workers.

About the Economic Alliance for Michigan
Founded in 1982, the Economic Alliance for Michigan (EAM) is comprised of businesses and unions working together with one clear objective – continued growth of Michigan’s economy by inspiring job growth and strengthen Michigan’s competitiveness for attracting companies and talent. The EAM seeks to use the collective voice of Michigan’s health purchasers to serve as catalysts for change to ensure appropriate access to patient-centric, high-value healthcare. Learn more at eamonline.org.