Virginia Governor Glenn Youngkin has vetoed two bills that would have created a prescription drug pricing system in the state, arguing similar models in other states have failed to lower drug costs.
The legislation, House Bill 483 and Senate Bill 271, would have established a prescription drug affordability board in Virginia. In a veto statement issued May 19, Mr. Youngkin said such boards are “expensive undertakings” that some states have repealed or are considering repealing because of “costs and ineffectiveness.”
Mr. Youngkin said he supported other prescription drug affordability measures passed during the legislative session, including bills targeting pharmacy benefit manager practices and requiring insurers to offer plans that cap monthly out-of-pocket drug costs.
The governor said he proposed amendments that would have directed the state’s Prescription Drug Affordability Advisory Panel to study a reference-based pricing system before implementation. The amendments also would have expanded drug pricing transparency requirements and increased the attorney general’s authority to investigate anticompetitive behavior involving drugmakers and insurers.
The General Assembly rejected the amendments, according to the veto statement.
The veto comes as states across the country are taking varying approaches to prescription drug pricing reform. While Virginia declined to establish an affordability board, states including California, North Carolina and Illinois have moved aggressively to restrict PBM practices such as spread pricing and patient steering.
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