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2001 SESSION

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HB 2692 Prescription Drug Access Act.

Introduced by: John J. Welch, III | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Virginia Prescription Drug Access Act. Establishes a program to reduce retail prescription drug prices by utilizing manufacturer rebates and pharmacy discounts. Drug manufacturers and labelers that sell prescription drugs through any benefit program receiving state funds are required to enter into rebate agreements with the Department of Human Resource Management. The amount of the rebates to be paid by manufacturers and labelers will be negotiated by the Department, and paid into a special fund. The Department is required to use best efforts to obtain an initial rebate amount equal to or greater than any rebate calculated under the state Medicaid program, and by October 2002 to obtain a rebate not less than the amount of any discount or other price reduction provided to the federal government. Participating retail pharmacies that sell prescription drugs covered by a rebate agreement are required to sell drugs at discounted prices determined by the Department based on the rebate agreements, with initial discounted prices taking effect January 1, 2002, and secondary discounted prices by October 1, 2002. The Department will reimburse participating retail pharmacies for discounted prices and professional fees, which start at three dollars per prescription, from the rebate moneys paid and other appropriated sums in the special fund. The Department may contract with third parties to administer components of the Program. The Department is required to establish procedures for the adoption and periodic review of maximum retail prices, and by January 1, 2004, the Department shall determine whether the cost of prescription drugs under the Program is reasonably comparable to the lowest cost paid for the same drugs delivered or dispensed in the Commonwealth. If the average cost for prescription drugs under the Program is not reasonably comparable to the average lowest cost for the same drugs, the Department shall establish maximum retail prices for any or all prescription drugs sold in Virginia, to take effect July 1, 2004. Selling a prescription drug for more than the maximum retail price will be a violation of the Virginia Consumer Protection Act. The bill also prohibits manufacturers, distributors and labelers from profiteering in prescription drugs. Profiteering includes (i) exacting or demanding an unconscionable price; (ii) exacting or demanding prices or terms that lead to any unjust or unreasonable profit; (iii) discriminating unreasonably against any person in the sale or distribution of prescription drugs; or (iv) intentionally preventing, limiting, lessening or restricting the sale or distribution of prescription drugs in retaliation for this law. Violators are subject to a fine of up to $100,000 and litigation costs. Private causes of action are also allowed, and injured persons may recover treble damages for willful violations. Profiteering will also be a prohibited practice under the Consumer Protection Act.


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