Prescription Drug Affordability Board; established, drug cost affordability review, report. (HB570)

Introduced By

Del. Karrie Delaney (D-Centreville) with support from 7 copatrons, whose average partisan position is:

Those copatrons are Del. Elizabeth Bennett-Parker (D-Alexandria), Del. Nadarius Clark (D-Portsmouth), Del. Rozia Henson (D-Woodbridge), Del. Marty Martinez (D-Leesburg), Del. Holly Seibold (D-Vienna), Del. Marcus Simon (D-Falls Church), Sen. Lamont Bagby (D-Richmond)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Prescription Drug Affordability Board established; drug cost affordability review. Establishes the Prescription Drug Affordability Board for the purpose of protecting the citizens of the Commonwealth and other stakeholders within the health care system from the high costs of prescription drug products. The bill requires the Board to meet in open session at least four times annually, with certain exceptions and requirements enumerated in the bill. Members of the Board are required to disclose any conflicts of interest, as described in the bill. The bill also creates a stakeholder council for the purpose of assisting the Board in making decisions related to drug cost affordability. The bill tasks the Board with identifying prescription, generic, and other drugs, as defined in the bill, that are offered for sale in the Commonwealth and, at the Board's discretion, conducting an affordability review of any prescription drug product. The bill lists factors for the Board to consider that indicate an affordability challenge for the health care system in the Commonwealth or high out-of-pocket costs for patients. The bill also provides that any person aggrieved by a decision of the Board may request an appeal of the Board's decision and that the Attorney General has authority to enforce the provisions of the bill. The bill provides that the Board shall establish no more than 12 upper payment limit amounts annually between January 1, 2025, and January 1, 2028. The bill requires the Board to report its findings and recommendations to the General Assembly twice annually, beginning on July 1, 2025, and December 31, 2025. Provisions of the bill shall apply to state-sponsored and state-regulated health plans and health programs and obligate such policies to limit drug payment amounts and reimbursements to an upper payment limit amount set by the Board, if applicable, following an affordability review. The bill specifies that Medicare Part D plans shall not be bound by such decisions of the Board. The bill also requires the nonprofit organization contracted by the Department of Health to provide prescription drug price transparency to provide the Board access to certain data reported by manufacturers. The bill has a delayed effective date of January 1, 2025, and is identical to SB 274. Read the Bill »

Notes

According to the fiscal impact statement, this legislation establishing the Prescription Drug Affordability Board would have the following fiscal impacts: 1. Establishment of the Board with five members appointed by the Governor: - Estimated cost per year for members attending at least four meetings: $7,300. 2. Hiring executive director, general counsel, and staff to support the Board's activities: - Cost estimate based on a similar commission: $348,774 for staff and associated office-related costs, including an Executive Director, Chief Policy Analyst, Associate Policy Analyst, and an Office Manager/Executive Assistant. 3. Additional costs for analytical support from Virginia Health Information (VHI) if needed. 4. Hiring an Assistant Attorney General I for enforcement of the bill: $138,000 annually, including salary and fringe benefits. 5. Comparison with similar Prescription Drug Affordability Boards in other states: - Colorado: $730,711 appropriated for PDAB implementation, 2 FTEs, 2 part-time Assistant Attorneys General, and $250,000 allocated for additional contractors. - Washington: $1,460,000 appropriated for PDAB, including staffing for 4 FTEs. - Maryland: $1 million annual budget, start-up costs of $831,900, 5 FTEs, and 1 part-time Assistant Attorney General. 6. Unclear impact on medical assistance programs administered by the Department of Medical Assistance Services (DMAS) due to indeterminate effects of upper payment limits on drug costs. Overall, the total cost of implementing this legislation is currently undetermined but would involve expenses related to Board operation, staff salaries, analytical support, and legal enforcement.

Summary generated automatically by OpenAI.

Outcome

Bill Has Failed

History

DateAction
01/09/2024Committee
01/09/2024Prefiled and ordered printed; offered 01/10/24 24100122D
01/09/2024Referred to Committee on Health and Human Services
01/16/2024Assigned sub: Health
01/17/2024Assigned sub: Health
01/25/2024Referred from Health and Human Services
01/25/2024Referred to Committee on Labor and Commerce
01/30/2024Assigned L & C sub: Subcommittee #1
01/31/2024Impact statement from DPB (HB570)
02/01/2024House committee, floor amendments and substitutes offered
02/01/2024Reported from Labor and Commerce with substitute (12-Y 10-N) (see vote tally)
02/01/2024Committee substitute printed 24106760D-H1
02/01/2024Referred to Committee on Appropriations
02/01/2024Assigned App. sub: Health & Human Resources
02/07/2024Subcommittee recommends reporting (5-Y 2-N)
02/09/2024Reported from Appropriations (11-Y 9-N) (see vote tally)
02/11/2024Read first time
02/12/2024Read second time
02/12/2024Committee substitute agreed to 24106760D-H1
02/12/2024Engrossed by House - committee substitute HB570H1
02/13/2024Read third time and passed House (52-Y 46-N)
02/13/2024VOTE: Passage (52-Y 46-N) (see vote tally)
02/13/2024Impact statement from DPB (HB570H1)
02/14/2024Constitutional reading dispensed
02/14/2024Referred to Committee on Education and Health
02/22/2024Rereferred from Education and Health (12-Y 0-N) (see vote tally)
02/22/2024Rereferred to Commerce and Labor
02/26/2024Reported from Commerce and Labor (10-Y 5-N) (see vote tally)
02/26/2024Rereferred to Finance and Appropriations
02/29/2024Reported from Finance and Appropriations (10-Y 4-N) (see vote tally)
03/04/2024Constitutional reading dispensed (40-Y 0-N)
03/05/2024Read third time
03/05/2024Passed Senate (25-Y 15-N)
03/25/2024Enrolled
03/25/2024Bill text as passed House and Senate (HB570ER)
03/25/2024Signed by President
03/26/2024Signed by Speaker
03/27/2024Impact statement from DPB (HB570ER)
03/27/2024Enrolled Bill communicated to Governor on March 27, 2024
03/27/2024G Governor's Action Deadline 11:59 p.m., April 8, 2024
04/08/2024G Vetoed by Governor
04/17/2024House sustained Governor's veto

Comments

Michael A writes:

..." and other stakeholders"... Who might they be?

On this and other grounds I respectively urge you to withdraw this big government power grab.

Post a Public Comment About this Bill



if you have one


(Limited HTML is OK: <a>, <em>, <strong>, <s>)