Virginia Senate Bill SB376

Virginia 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Prescription Drug Affordability Board; established, drug cost affordability review, report.

Impact

The establishment of the Prescription Drug Affordability Board represents a major shift in how Virginia handles pharmaceutical pricing regulation. The Board will review both brand-name and generic drugs that meet specific cost criteria and may pose affordability challenges for patients. By implementing upper limits on drug prices, the legislation aims to alleviate the financial burden on consumers while ensuring that healthcare providers in the state can continue to deliver essential medical services. This could lead to reduced insurance premiums and overall healthcare costs, particularly for vulnerable populations and those affected by the opioid crisis.

Summary

Senate Bill 376 establishes the Prescription Drug Affordability Board in Virginia, aimed at addressing the high costs of prescription drugs. This Board will consist of five members with expertise in health care and economics, responsible for assessing the affordability of certain specified medication products. The bill stipulates that the Board has the authority to set upper payment limits for prescription drugs, which would significantly influence pricing structures across the state's healthcare system. This initiative is prompted by the need to protect patients and other stakeholders from exorbitant drug prices that can strain both individuals and public health systems.

Contention

While supporters argue that the bill will make necessary medications more accessible and affordable, there are concerns about potential pushback from pharmaceutical companies. Critics may argue that setting price ceilings could discourage innovation and lead to reduced availability of certain medications. Additionally, the debate on how aggressively the Board will regulate costs and the balance it must strike between affordability and manufacturer profitability will likely be contentious. Stakeholders, including healthcare providers and drug manufacturers, may have differing views on the Board's authority and its potential implications for patient care and pharmaceutical development.