SB271 • 2026

Prescription Drug Affordability Board; established.

An Act to amend and reenact § 32.1-276.7:1 of the Code of Virginia and to amend the Code of Virginia by adding in Title 32.1 a chapter numbered 7.3, consisting of sections numbered 32.1-276.12, 32.1-276.13, and 32.1-276.14, and by adding in Article 1 of Chapter 34 of Title 54.1 a section numbered 54.1-3431.1, relating to prescription drug affordability advisory panel established; maximum fair price; annual reports; civil penalties.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Deeds
Last action: 2026-05-19
Official status: Governor's Veto
Effective date: Not listed

Plain English Breakdown

The bill was vetoed by the Governor due to concerns about its effectiveness and cost.

Prescription Drug Affordability Advisory Panel

This act establishes a Prescription Drug Affordability Advisory Panel to study and report on ways to make prescription drugs more affordable in Virginia.

What This Bill Does

Establishes an advisory panel to analyze data, develop policy recommendations, and identify barriers related to strategies for improving prescription drug affordability.
Requires the panel to provide annual reports on prescription drug pricing trends and any policy recommendations on legislation to improve affordability.
Directs pharmacy benefits managers to share information with the panel upon request.
Prohibits prescription drug manufacturers or wholesale distributors from accepting payment higher than a maximum fair price set by federal law for certain drugs.

Who It Names or Affects

Prescription drug manufacturers
Wholesale distributors of drugs
Pharmacy benefits managers

Terms To Know

Prescription Drug Affordability Advisory Panel: A group that studies ways to make prescription drugs more affordable.
Maximum fair price: The highest amount a drug maker can charge for certain medicines in Virginia, as established by federal law.

Limits and Unknowns

This bill was vetoed by the Governor due to concerns about its effectiveness and cost.
It is not clear if similar boards have been successful in other states.
The bill does not specify when it will take effect.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SB271G

2026-04-13 • Governor

Governor's Recommendation

Plain English: (SB271) GOVERNOR'S RECOMMENDATION I approve the general purpose of this bill, but I am returning it without my signature with the request that the attached Amendment in the Nature of a Substitute (26110264D) be accepted.

(SB271) GOVERNOR'S RECOMMENDATION I approve the general purpose of this bill, but I am returning it without my signature with the request that the attached Amendment in the Nature of a Substitute (26110264D) be accepted.

SB271AH1

2026-03-09 • Member

Delegate Delaney Amendments

Plain English: 3/09/2026 SB 271 DEL.

3/09/2026 SB 271 DEL.
DELANEY 1.
After line 276, substitute insert "Commissioner" means the State Health Commissioner.
"Department" means the Department of Health.

SB271ASC1

2026-01-26 • Committee

Commerce and Labor Amendment

Plain English: OFFERED FOR CONSIDERATION 1/26/2026 SB 271 COMMERCE AND LABOR 1.

OFFERED FOR CONSIDERATION 1/26/2026 SB 271 COMMERCE AND LABOR 1.
Line 64, introduced, after centers, strike or insert and COMMERCE AND LABOR 2.
At the beginning of line 236, introduced strike independent COMMERCE AND LABOR 3.
Line 263, introduced, after have strike the remainder of line 263 and through have on line 264 insert (i) been on the market for at least three years; (ii) a wholesale acquisition cost that is not 20 percent or more lower than the referenced brand biologic wholesale acquisition cost at the time of the biosimilar launch; and (iii) COMMERCE AND LABOR 4.

SB271AS1

2026-01-29 • Committee

Commerce and Labor Amendment

Plain English: 1/29/2026 (SB271) AMENDMENT(S) PROPOSED BY THE SENATE COMMERCE AND LABOR 1.

1/29/2026 (SB271) AMENDMENT(S) PROPOSED BY THE SENATE COMMERCE AND LABOR 1.
Line 64, introduced, after centers, strike or insert and COMMERCE AND LABOR 2.
At the beginning of line 236, introduced strike independent COMMERCE AND LABOR 3.
Line 263, introduced, after have strike the remainder of line 263 and through have on line 264 insert (i) been on the market for at least three years; (ii) a wholesale acquisition cost that is not 20 percent or more lower than the referenced brand biologic wholesale acquisition cost at the time of the biosimilar launch; and (iii) COMMERCE AND LABOR 4.

SB271S1

2026-04-14 • Governor

Governor Substitute

Plain English: 2026 SESSION SENATE SUBSTITUTE 26110264D SENATE BILL NO.

2026 SESSION SENATE SUBSTITUTE 26110264D SENATE BILL NO.
271 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the Governor on April 13, 2026) (Patron Prior to Substitute—Senator Deeds) A BILL to amend and reenact §§ 32.1-276.3 and 32.1-276.7:1 of the Code of Virginia and to amend the Code of Virginia by adding in Title 32.1 a chapter numbered 7.3, consisting of sections numbered 32.1-276.12 , 32.1-276.13 , and 32.1-276.14 , and by adding in Article 1 of Chapter 34 of Title 54.1 a section numbered 54.1-3431.1 , relating to prescription drug affordability advisory panel established; maximum fair price; annual reports; civil penalties; report.
Be it enacted by the General Assembly of Virginia: 1.
That §§ 32.1-276.3 and 32.1-276.7:1 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding in Title 32.1 a chapter numbered 7.3, consisting of sections numbered 32.1-276.12 , 32.1-276.13 , and 32.1-276.14 , and by adding in Article 1 of Chapter 34 of Title 54.1 a section numbered 54.1-3431.1 as follows: § 32.1-276.3 .

Bill History

2026-05-19 Senate
Governor's Veto Received by Senate
2026-05-19 Governor
Vetoed by Governor
2026-04-22 Senate
Communicated to Governor
2026-04-22 Governor
Governor's Action Deadline 11:59 p.m., May 23, 2026
2026-04-22 Senate
Passed by for the day (Voice Vote)
2026-04-13 Governor
Governor's recommendation received by Senate
2026-03-31 Senate
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-31 House
Signed by Speaker
2026-03-31 Senate
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-31 Senate
Fiscal Impact Statement from Department of Planning and Budget (SB271)
2026-03-30 Senate
Signed by President
2026-03-30 Senate
Enrolled
2026-03-30 Senate
Bill text as passed Senate and House (SB271ER)
2026-03-23 Senate
Fiscal Impact Statement from Department of Planning and Budget (SB271)
2026-03-11 Senate
House substitute agreed to by Senate
2026-03-10 House
Floor substitute printed 26109555D-H2 (Delaney)
2026-03-10 House
Floor Offered
2026-03-10 House
Read third time
2026-03-10 House
Delegate Delaney Substitute withdrawn by House
2026-03-10 House
Delegate Delaney Floor amendments withdrawn
2026-03-10 House
Delegate Delaney Floor substitute agreed to
2026-03-10 House
Engrossed by House - floor substitute
2026-03-10 House
Passed House with substitute (95-Y 4-N 0-A)
2026-03-09 House
Floor substitute printed 26109393D-H1 (Delaney)
2026-03-09 House
Floor Offered
2026-03-09 House
Floor Offered
2026-03-09 House
Read third time
2026-03-09 House
Passed by temporarily
2026-03-09 House
Passed by for the day
2026-03-06 House
Read second time
2026-03-04 Appropriations
Reported from Appropriations (17-Y 5-N)
2026-02-12 House
Placed on Calendar
2026-02-12 House
Read first time
2026-02-12 Appropriations
Referred to Committee on Appropriations
2026-02-11 Health & Human Resources
Assigned HAPP sub: Health & Human Resources
2026-02-10 Senate
Fiscal Impact Statement from Department of Planning and Budget (SB271)
2026-02-06 Senate
Read third time and passed Senate (31-Y 8-N 0-A)
2026-02-05 Senate
Read second time
2026-02-05 Senate
Engrossed by Senate as amended (Voice Vote)
2026-02-05 Commerce and Labor
Commerce and Labor Amendments agreed to
2026-02-05 Senate
Engrossed by Senate (Voice Vote)
2026-02-04 Senate
Rules suspended
2026-02-04 Senate
Passed by for the day
2026-02-04 Senate
Passed by for the day
2026-02-04 Senate
Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)
2026-02-04 Senate
Passed by for the day Block Vote (Voice Vote)
2026-02-03 Finance and Appropriations
Reported from Finance and Appropriations (9-Y 5-N 1-A)
2026-01-27 Senate
Fiscal Impact Statement from Department of Planning and Budget (SB271)
2026-01-26 Commerce and Labor
Reported from Commerce and Labor with amendments and rereferred to Finance and Appropriations (10-Y 4-N 1-A)
2026-01-26 Senate
Senate committee offered
2026-01-22 Education and Health
Rereferred from Education and Health to Commerce and Labor (14-Y 0-N)
2026-01-12 Senate
Prefiled and ordered printed; Offered 01-14-2026 26105318D
2026-01-12 Education and Health
Referred to Committee on Education and Health

Official Summary Text

Prescription Drug Affordability Advisory Panel established; maximum fair price; annual reports; civil penalties.
Directs the Secretary of Health and Human Resources to establish the Prescription Drug Affordability Advisory Panel to conduct data analyses, develop policy recommendations, and identify implementation barriers related to strategies to improve prescription drug affordability, enhance price transparency, and strengthen data collection practices for prescription drugs across public and private payers. The bill requires the Panel to (i) report annually on prescription drug pricing trends and any policy recommendations on legislation to improve prescription drug affordability and (ii) provide quarterly updates on prescription drug pricing trends. The bill requires each pharmacy benefits manager to provide to the Panel, upon request, certain information relating to the dispensation of a referenced drug, as defined in the bill.
The bill prohibits prescription drug manufacturers or wholesale distributors permitted or licensed in the Commonwealth from accepting payment at an amount higher than the maximum fair price established by the U.S. Secretary of Health and Human Services pursuant to federal law for the sale of a referenced drug intended for use by individuals in the Commonwealth. Under the bill, an entity that violates such prohibition is subject to a civil penalty of $10,000 per violation. The bill also prohibits a manufacturer subject to its provisions from removing a referenced drug from sale distribution in the Commonwealth for the purpose of avoiding the impact of the bill's rate limitations without providing certain prior notice. Under the bill, a manufacturer that violates such prohibition on removing a referenced drug without the required notice is subject to a civil penalty equal to the greater of $100,000 or the total amount of annual savings for the referenced drug, as determined by the Board of Pharmacy. This bill is identical to HB 483.

Current Bill Text

Read the full stored bill text

(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.