RICHMOND, Va. — Today, HB483, known as the Affordable Medicine Act, patroned by Delegate Karrie Delaney (D-Fairfax), passed for the final time in the House by a bipartisan vote of 87-11. Yesterday, the Senate companion, SB271, patroned by Senator Creigh Deeds (D-Charlottesville), passed for the final time in the Senate by a bipartisan vote of 32-8. Both bills will now go to Governor Spanberger’s desk for signing.
The newest and final iteration of the Affordable Medicine Act will begin saving hundreds of thousands of Virginians millions of dollars on January 1, 2027. The legislation models its first-in-the-nation approach on the federal Medicare-negotiated prices that are already in effect and have been adopted – and expanded– by both the Biden and Trump administrations. The Act uses existing state authority to draw down the negotiated Maximum Fair Prices to hundreds of thousands of Virginians, maximizing efficiency and minimizing fiscal impact to the Commonwealth.
The federal government has already set 40 Maximum Fair Prices; the first 10 took effect on January 1 – a little over two months ago – and the next 15 take effect on January 1, 2027. Nearly 200,000 Medicare enrollees in Virginia are already benefiting from lower prices on the first 10 Maximum Fair Prices that took effect on January 1. That number will only grow on January 1, 2027, when Maximum Fair Prices take effect for 15 additional drugs used to treat conditions like asthma, cancer, COPD, and diabetes. Based on savings to Medicare enrollees, the following are projected cost savings Virginians should see under the Affordable Medicine Act when it goes into effect on January 1, 2027:
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A 30-day supply of the diabetes medication Januvia costs $113 in 2026, which is a 79% reduction from the 2023 list price of $527;
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A 30-day supply of Eliquis, which treats and prevents blood clots, costs $231 in 2026, which is a 56% reduction from the 2023 list price of $521 in 2023;
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Enbrel, which treats autoimmune diseases including rheumatoid arthritis, costs $2,355 in 2026, which is a 67% reduction from the 2023 list price of $7,106; and
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Entresto, which treats chronic heart failure and heart disease, costs $295 in 2026, which is a 53% reduction from the 2023 list price of $628
Other crucial details of the Act include:
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A requirement that cost savings from a Maximum Fair Price are passed along to consumers and not pocketed by middlemen to ensure out-of-pocket-costs are reduced;
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Ensuring that drug companies can’t withdraw a drug with a Maximum Fair Price from the Commonwealth to avoid the fair price.
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The ability to hold drug companies and Pharmacy Benefit Managers (PBMs) accountable by requiring PBMs to provide greater reporting and transparency on rebate and other financial data
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Protections for pharmacists, ensuring that no pharmacist is reimbursed less than the Maximum Fair Price;
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Establishing the Prescription Drug Affordability Advisory Panel to analyze health care economic data and make policy recommendations to the General Assembly and Governor on how we can make better decisions to lower the cost of prescription drugs in the years to come;
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Exemptions for rare disease drugs, in alignment with federal law;
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A delayed enactment to allow time for the Department of Health to prepare regulations and enforcement so Virginians will see savings immediately on January 1, 2027;
Freedom Virginia Co-Executive Director Rhena Hicks released the following statement:
“We are incredibly excited about how the Affordable Medicine Act has evolved into the history-making measure that passed the General Assembly this week with overwhelming bipartisan support to make medicine more affordable. A lot of hard work and consideration went into creating a now nation-leading effort that will lower the cost of prescription drugs for Virginians. The Affordable Medicine Act is more than a promise to lower costs; it is a policy that guarantees Virginians see and feel savings on their prescription drugs. The Act is the result of bipartisan work to ensure we’re looking at more than just the pharmaceutical companies, so we can hold bad actors accountable for skyrocketing costs across the prescription drug supply chain. Over the last four years, we’ve repeatedly said that medicine can’t do its job if you can’t afford it, and this legislation will make medicine and life more affordable for Virginians. There is no time to wait; hardworking people are struggling more and more each day with rising costs across the economy. The General Assembly is sending a first-in-the-nation, landmark policy that will make a tangible difference in Virginians’ lives to the governor’s desk today. We are excited for Governor Spanberger to meet this moment and sign this revolutionary Act to lower the cost of medicine into law.”
