(SB271)

GOVERNOR'S VETO

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto Senate Bill 271.

I share and appreciate the General Assembly's commitment to lowering prescription drug costs for Virginians. During this past General Assembly session, the legislature took important steps toward lowering healthcare costs by passing bills to hold pharmacy benefit managers accountable and to require health insurance carriers to offer plans that cap monthly out-of-pocket costs for drugs. I was proud to sign these critical bills into law. However, I am vetoing Senate Bill 271 because evidence from other states clearly show that Prescription Drug Affordability Boards (“PDABs”) do not achieve this goal. They are expensive undertakings that other states have either repealed or are considering repealing due to costs and ineffectiveness.

As such, I offered amendments to the General Assembly that would have directed the Prescription Drug Affordability Advisory Panel to study a reference-based pricing system before the state spends millions of dollars on implementation. My amendments also would have required greater drug pricing transparency for consumers and policymakers, providing new data to give insight into drivers of out-of-pocket costs in Virginia. Lastly, my amendments would have expanded the Attorney General's investigatory and enforcement authority to crack down on anticompetitive behavior between pharmaceutical manufacturers and insurance carriers.

Unfortunately, the General Assembly rejected these amendments. I look forward to partnering with the General Assembly on proposals that will reduce the cost of prescription drugs for Virginians across the Commonwealth.

Accordingly, I veto this bill.