Virginia SB 271: Prescription Drug Affordability Board; established.

Bill Text

2026 SESSION

INTRODUCED

26105318D

SENATE BILL NO. 271

Offered January 14, 2026

Prefiled January 12, 2026

A BILL to amend and reenact § 54.1-3442.02 of the Code of Virginia and to amend the Code of Virginia by adding in Title 32.1 a chapter numbered 7.3, consisting of sections numbered 32.1-276.12 through 32.1-276.19, relating to Prescription Drug Affordability Board established; drug cost affordability review.

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Patrons—Deeds and Carroll Foy

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Referred to Committee on Education and Health

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Be it enacted by the General Assembly of Virginia:

1. That § 54.1-3442.02 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding in Title 32.1 a chapter numbered 7.3, consisting of sections numbered 32.1-276.12 through 32.1-276.19, as follows:

CHAPTER 7.3.

AFFORDABLE MEDICINE ACT.

§ 32.1-276.12. Definitions. 

As used in this chapter, unless the context requires a different meaning:

"Biologic" means a drug that is produced or distributed in accordance with a biologics license application approved under 42 U.S.C. § 262.

"Biosimilar" means a drug that is produced or distributed in accordance with a biologics license application approved under 42 U.S.C. § 262(k)(3).

"Board" means the Prescription Drug Affordability Board.

"Brand-name drug" means a drug that is produced or distributed in accordance with an original new drug application approved under 21 U.S.C. § 355(c). "Brand-name drug" does not include an authorized generic drug as defined by 42 C.F.R. § 447.502.

"ERISA plan" means an employee welfare benefit plan as defined in § 3(1) of the Employee Retirement Income Security Act of 1974.

"Generic drug" means (i) a retail drug that is marketed or distributed in accordance with an abbreviated new drug application approved under 21 U.S.C. § 355(j), (ii) an authorized generic drug as defined by 42 C.F.R. § 447.502, or (iii) a drug that entered the market before 1962 that was not originally marketed under a new drug application.

"Manufacturer" means an entity that (i) (a) owns the patent to a prescription drug product, (b) engages in the manufacture of a prescription drug product, (c) enters into a lease with another manufacturer to market and distribute a prescription drug product under the entity's own name, or (d) is the labeled entity of the generic product at the point of manufacture and (ii) sets or changes the wholesale acquisition cost of the prescription drug product it manufactures or markets.

"Medicare Part D plan" has the same meaning as provided in 42 C.F.R. § 423.4.

"Nonprofit data services organization" has the same meaning as provided in § 32.1-23.4.

"Participating ERISA plan" means an ERISA plan that elects to be subject to upper payment limits pursuant to § 32.1-276.19.

"Pharmacy benefits manager" has the same meaning as provided in § 38.2-3465.

"Prescription drug product" means a drug or biological product receiving approval under a drug application pursuant to 21 U.S.C. § 355(b) or under a biologics license application approved under 42 U.S.C. § 262.

"Rare disease or condition" means any disease or condition that affects fewer than 200,000 persons in the United States.

"Stakeholder council" means the Prescription Drug Affordability Board stakeholder council.

"State entity" means any agency of state government that purchases or reimburses payers for prescription drugs on behalf of the Commonwealth for any person whose health care is paid for by the Commonwealth, including any agent, vendor, contractor, or other party acting on behalf of the Commonwealth.

§ 32.1-276.13. Prescription Drug Affordability Board established.

A. There is hereby established within the Department the Prescription Drug Affordability Board for the purpose of protecting citizens of the Commonwealth and other stakeholders within the health care system from the high costs of prescription drug products.

B. The Board shall be composed of five nonlegislative citizen members that shall be appointed as follows: two members to be appointed by the Speaker of the House of Delegates, two members to be appointed by the Senate Committee on Rules, and one member to be appointed by the Governor who shall be a representative of a local government in the Commonwealth. The Secretary of Health and Human Resources or his designee shall serve as an ex officio, nonvoting member of the Board. The Governor shall appoint three alternate nonlegislative citizen members of the Board. Members of the Board shall have expertise in health care, health care economics, the federal 340B Drug Pricing Program and its impacts on Virginia's federally qualified health centers, or clinical medicine. No member or alternate member of the Board shall be an employee of, a board member of, or a consultant to a manufacturer, health plan, hospital, pharmacy benefits manager, or trade association for manufacturers, health plans, hospitals, or pharmacy benefits managers. Any conflict of interest