Vermont H 577: An act relating to the basic needs budget and livable wage

Bill Text

No. 132 Page 1 of 10
2026

VT LEG #390204 v.1
No. 132. An act relating to establishing the Vermont Prescription Drug
Discount Card Program.
(H.577)
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 18 V.S.A. chapter 91, subchapter 7 is added to read:
Subchapter 7. Vermont Prescription Drug Discount Card Program
§ 4691. VERMONT PRESCRIPTION DRUG DISCOUNT CARD
PROGRAM
(a) There is established the Vermont Prescription Drug Discount Card
Program, administered by the Office of the State Treasurer, for the purpose of
pooling prescription drug purchasing power with other U.S. states and
territories and nongovernmental organizations. The Program shall be made
available to all Vermont residents.
(b)(1) To further the purposes of the Program, the State Treasurer may
cooperate with other U.S. states and territories, regional consortia, or
nongovernmental organizations, or a combination of these, to pool prescription
drug purchasing power to:
(A) reduce prescription drug costs;
(B) negotiate discounts with prescription drug manufacturers;
(C) centralize prescription drug purchasing; and
(D) establish volume discount contracting.

No. 132 Page 2 of 10
2026

VT LEG #390204 v.1
(2) As used in subdivision (1)(D) of this subsection, “volume discount
contracting” means the negotiated purchase of a large quantity of a prescription
drug at a decreased cost.
(c) Monies received by the Program from transfers, gifts, grants, donations,
or any other source, including any monies provided to the State through a
cooperative arrangement authorized by this section, shall be deposited in the
Financial Literacy and Economic Empowerment Trust Fund established
pursuant to 32 V.S.A. § 111 and shall be available to the Office of the State
Treasurer to defray costs associated with administering the Program.
(d) The amount paid for a prescription drug after application of the
Vermont Prescription Drug Discount Card by an individual who is covered by
a health insurance plan, as defined in 8 V.S.A. § 4011, shall be attributed
toward the covered individual’s deductible and out-of-pocket responsibilities
in accordance with 8 V.S.A. § 4093 and section 3612 of this title.
(e) On or before January 15, 2028, and annually thereafter, the State
Treasurer shall submit a report to the House Committee on Health Care, the
Senate Committee on Health and Welfare, and the Governor detailing the
activities of the Program during the previous calendar year, including the
number of Vermont residents and pharmacies participating in the Program; the
amount of savings on prescription drug costs achieved; and the impact, if any,
of the Program on the viability of Vermont’s pharmacies.

No. 132 Page 3 of 10
2026

VT LEG #390204 v.1
Sec. 2. 8 V.S.A. § 4093 is amended to read:
§ 4093. RETAIL PHARMACIES; FILLING OF PRESCRIPTIONS
* * *
(c)(1) A health insurer or pharmacy benefit manager shall permit a
participating network pharmacy to perform all pharmacy services within the
lawful scope of the profession of pharmacy as set forth in 26 V.S.A. chapter
36.
(2) A health insurer or pharmacy benefit manager shall not do any of the
following:
* * *
(F)(i) Exclude any amount paid by or on behalf of a covered
individual, including any third-party payment, financial assistance, discount,
discount card, coupon, or other reduction, regardless of whether the individual
purchased the drug with or without using coverage for the drug under any
health insurance plan, when calculating a covered individual’s contribution
toward:
(I) the out-of-pocket limits for prescription drug costs under
section 4092 of this title;
(II) the covered individual’s deductible, if any; or
(III) to the extent not inconsistent with Sec. 2707 of the Public
Health Service Act, 42 U.S.C. § 300gg-6, the annual out-of-pocket maximums
applicable to the covered individual’s health benefit plan.

No. 132 Page 4 of 10
2026

VT LEG #390204 v.1
(ii) The provisions of subdivision (i) of this subdivision (F)
relating to a third-party payment, financial assistance, discount, coupon, or
other reduction in out-of-pocket expenses made on behalf of a covered
individual shall only apply to a prescription drug:
(I) for which there is no generic drug or interchangeable
biological product, as those terms are defined in 18 V.S.A. § 4601; or
(II) for which there is a generic drug or interchangeable
biological product, as those terms are defined in 18 V.S.A. § 4601, but for
which the covered individual has obtained access through prior authorization, a
step therapy protocol, or the pharmacy benefit manager’s or health insurer’s
exceptions and appeals process.
(iii) The provisions of subdivision (i) of this subdivision (F) shall
apply to a high-deductible health plan only to the extent that it would not
disqualify the plan from eligibility for a health savings account pursuant to
26 U.S.C. § 223.
(iv) In order to facilitate the appropriate attribution of amounts
paid by or on behalf of a covered individual pu