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Bill

SB 1078

Health insurance; cost-sharing, pharmacy benefits managers, compensation and duties, civil penalty.

2025 Regular Session Introduced by Mark Peake

SB 1078 imposes regulatory requirements on pharmacy benefits managers' compensation and practices in Virginia, establishing civil penalties for violations to address drug pricing transparency concerns.

Failed to report (defeated) in Commerce and Labor (5-Y 10-N)
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WeVote Research Nonpartisan
Bill Summary · SB 1078

Legislative bill overview

SB 1078 would regulate pharmacy benefits managers (PBMs) in Virginia by imposing requirements on their compensation structures, pharmacy benefits management practices, and duties to health insurers and consumers. The bill establishes civil penalties for violations of these new regulations.

Why is this important

PBMs act as intermediaries between insurers, pharmacies, and patients, controlling drug formularies and pricing. Regulation of PBM practices has become a priority nationwide due to concerns about rising prescription drug costs, pharmacy closures, and reduced transparency in how drug prices are set and rebates are distributed.

Potential points of contention

  • Industry opposition: PBMs and health insurers may argue that new compensation restrictions could increase administrative costs or reduce negotiating leverage for drug discounts
  • Scope of regulation: Defining which PBM practices are problematic versus beneficial to consumers is contested—stricter rules could increase drug costs if rebate negotiations are constrained
  • Implementation complexity: Establishing enforceable standards for "fair compensation" and pharmacy duties requires detailed regulatory definitions that could be difficult to operationalize

Compiled from official sources — confirm details with the bill’s official record.

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