Affordable Medicine Act
The Problem
1 out of every 4 Virginians who depend on prescriptions chooses not to take those medications solely because they cannot afford them. Over the last decade, Virginians have been shouldering a greater burden of prescription drug costs than most Americans. In 2020, Virginians spent 36% more per person on prescription drugs than the national average: $1,500 in Virginia compared to $1,100 nationally. From 2015 to 2020, Virginians’ average spending on prescription drugs rose from $1,400 to $1,500 – a 6.6% increase, more than twice the national increase. Last year, Virginians paid a combined $3.2 billion on prescription drugs in the commercial market. Big pharmaceutical companies are making record profits while Virginia families face skyrocketing prescription drug costs.
The Solution
The Affordable Medicine Act 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 new legislation builds on the successes of Prescription Drug Affordability Board legislation from around the country and the Inflation Reduction Act. The Act received overwhelming bipartisan support in the General Assembly this year, passing the Senate 34-6 and the House 95-4. According to a Public Policy Polling poll, 82% of Virginians support the Affordable Medicine Act.
Recent research shows that the Affordable Medicine Act could save Virginians $95 million annually on out-of-pocket costs and premiums. Across the country, Medicare recipients have saved $1.5 billion through prescription drug negotiations. PDABs in Maryland and Colorado have set Upper Payment Limits on drugs like Ozempic and Enbrel, which are estimated to save people millions each year.
Medicine can’t do its job if you can’t afford it, and Virginians shouldn’t have to choose between prescriptions and other necessities like rent and groceries.
