A Virginia House Committee advanced on Tuesday a Democrat plan to create a Prescription Drug Affordability board, renewing efforts after Gov. Glenn Youngkin had vetoed a similar measure last year.
House Bill 1724 sponsored by Del. Karrie Delaney (D-Fairfax) and Del. Ellen Campbell, R. Rockbridge, was approved by the House Commerce and Labor Committee with a party-line vote of 12-9. The bill now goes to the House Appropriations Committee.
Supporters say the board will bring much needed oversight to drug prices, identify excessively priced drugs and recommend strategies to reduce costs, such as potential price caps.
Delaney said to the committee, “When I knock at doors in my district I hear heartbreaking tales of neighbors who are forced to ration medication or choose between paying for lifesaving prescriptions or keeping the heat on.” Drug companies are making record profits, while prices of their products continue to rise well above inflation. It is obvious that the cost to stay alive in Virginia has risen far too much .”
The board will review drug prices, and set payment limitations for up to twelve drugs per year between 2026-2029. It will focus on state-sponsored health plans that are regulated by the government. A stakeholder council will assist in making decisions. Manufacturers would also be required to provide pricing data. The attorney general would enforce compliance.
As public concern about rising drug prices grows, the proposal has gained momentum. The advocates point out that similar boards exist in Maryland, where the Maryland state legislature has asked a similar board to come up with a plan for capping the amount the state and local government pays for high-cost drugs.
Those who oppose the bill, such as representatives of the pharmaceutical industry argue that a board like this could reduce innovation and access to certain medicines. The drug industry also warns that price controls can disrupt supply chains, and discourage drug manufacturers from operating in Virginia.
House Minority Leader Todd Gilbert (R-Shenandoah) expressed concern about the proposal’s unintended consequences. He cited recent events that occurred in Southern California, where wildfires near Los Angeles highlighted coverage gaps for many residents.
Gilbert stated during the Tuesday committee discussion that he was “amazed” by the situation in California. “A number of people affected by the fires were left uninsured because a large number of insurance companies either dropped coverage or drastically reduced it in California. Every dollar in premiums they collected, they paid out $1.09 on lawsuits. They said that they were in business to make money whether anyone liked it or not. This .'” is not a profitable business.
Gilbert warned that the proposed supervision of drug pricing may lead to a scenario similar.
