Petersen Bill To Rein In Drug Prices Advances Through VA Senate

RICHMOND, VA — A bill authored by Sen. Chap Petersen (D-34) designed to protect consumers from the high costs of prescription drug products is advancing though the Virginia Senate this week.

The Senate Commerce and Labor Committee approved the legislation, called the Prescription Drug Affordability Board (SB 957), by an 11-4 vote on Sunday. The bill is awaiting a vote by the Senate Finance and Appropriations Committee, of which Petersen is a member.

"Everybody knows one of the biggest issues, and I'd say for seniors, but really for everybody, is the spiraling costs of prescription drugs," Petersen said, during a news conference on Wednesday. "How do we get a handle on it? It's outstripped inflation year after year after year. Not only to seniors, it's a cost to people that have permanent conditions, and it's a cost of the Commonwealth because we're writing checks on behalf of Medicaid."

Sen. Creigh Deeds (D-25) is the chief co-patron of the bill, with Sens. John J. Bell (D-13), Adam P. Ebbin (D-30), Mamie E. Locke (D-2), and Joseph D. Morrissey (D-16) signing on as patrons.

SB 957 seeks to establish a Prescription Drug Affordability Board and Fund. If the bill is passed, the board would have the power to review the affordability of any prescription drug product and identify any "affordability challenge" the product causes to healthcare systems in Virginia or to the out-of-pocket expenses of the public. It also provides an avenue for anyone who has been aggrieved by the board's decision to appeal to the Virginia attorney general.

The bill would also establish a Prescription Drug Affordability Fund to pay for the operations of the board and reimburse state agencies any costs associated with implementing the bill's provisions.

Related: Campaign Reform, In-Person Education Amendment Top Petersen Priorities

The bill would also obligate state-sponsored and state-regulated health plans and health programs to limit drug payment amounts and reimbursements based on limits set by the board, if applicable. Medicare Part D plans would not be bound by such decisions made by the board.

In authoring SB 957, Petersen wanted to mirror the Manchen-Schumer Act passed by Congress last year does, which, among other things, allows the federal government to negotiate directly with drug manufacturers for an upper price limit for certain high-demand, high-cost drugs.

"That is a huge victory for consumers," Petersen said. "It basically says, 'Here's a drug price,' and gives a fair return to the manufacturers for their research costs and profit that they need, but at the same time, make sure that it stays within the purchasing ability of ordinary people."

If the Virginia Assembly passes SB 957 this session and Gov. Glenn Youngkin signs it into law, the Prescription Drug Affordability Board would be able to set limits on how much drug companies could charge for certain high-demand, high-cost prescription drugs.

"There will be a stakeholder council, so the drug companies can basically talk about their return on equity, talk about their research costs," Petersen said. "I believe in capitalism. I have no problem with people making money. But at the end of the day, we got to protect our people. We got to protect our consumers, and we got to protect our taxpayers. Senate Bill 957 is going to make that happen."

Fairfax City and Vienna-area residents will be able to provide feedback and receive updates about the current legislative session at these constituent events:

• Town Hall Meeting with Sen. Chap Petersen and Del. David Bulova: Feb. 4, 9-11 a.m., at Fairfax City Hall, 10455 Armstrong Street, Fairfax, VA 22030
• Town Hall Meeting with Sen. Chap Petersen and Del. Holly Seibold: Feb. 11, 9-11 a.m., at Vienna Police Department, 215 Center St. South, Vienna, VA 22180