The Affordable Medicine Act, which aims to lower prescription drug costs and improve health care affordability in Virginia, advanced out of the Senate Commerce and Labor Committee on Monday.
Its central feature is the creation of a Prescription Drug Affordability Board with authority to set upper payment limits on high-cost medications. The bill builds on state policies and the federal Inflation Reduction Act.
“The board would be an independent body of health and medical experts appointed by the governor, the House and the Senate. It would use proven database strategies already working in other states and at the federal level to lower prescription drug prices,” said Sen. Creigh Deeds, D-Charlottesville, the bill’s sponsor.
To streamline implementation, board members must be appointed by Oct. 1, 2026, and the board would initially adopt payment caps tied to Medicare-negotiated prices for 25 drugs. 10 would take effect beginning in 2027, with 15 additional drugs following in 2028.
“The board would set an upper payer payment limit that applies to the entire supply chain,” Deeds said.
The bill includes targeted exemptions for certain rare disease drugs and plasma-based treatments, while expanding protections and representation for rare disease patients. It requires that any savings from payment caps be passed on to consumers and tightens conflict-of-interest rules for board members. The legislation also increases transparency, protects pharmacists’ reimbursements, allows ERISA plans to opt in, and directs the board to recommend further cost-saving drug policies to state leaders.
The legislation advanced out of the Commerce and Labor Committee on a 10-4 vote. It will now be taken up in the Senate Finance Committee.
Similar legislation has passed in previous years, but former Gov. Glenn Youngkin vetoed it both times.
Gov. Abigail Spanberger’s office did not respond to a request for comment on this legislation.