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Bill

HB 2375

Prescription drug price transparency; pharmacy services administrative organizations.

2025 Regular Session Introduced by Betsy Carr and 4 co-sponsors

Virginia law requires pharmacy benefit managers and pharmacy services organizations to disclose prescription drug pricing and reimbursement methodologies to improve transparency and reduce costs.

Acts of Assembly Chapter text (CHAP0269)
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Bill Summary · HB 2375

Legislative bill overview

HB 2375 requires pharmacy services administrative organizations (PSAOs) and pharmacy benefit managers (PBMs) to increase transparency regarding prescription drug pricing and reimbursement rates. The bill mandates disclosure of pricing methodologies, fee structures, and formulary decisions to pharmacies and potentially consumers, effective July 1, 2025.

Why is this important

Prescription drug prices are a significant healthcare cost driver, and many pharmacies report operating at losses on certain medications due to opaque reimbursement practices. Increased transparency can help identify pricing disparities, reduce administrative burden on pharmacies, and potentially lower costs for consumers and the healthcare system.

Potential points of contention

  • PBM/PSAO compliance burden: Requiring detailed disclosure of proprietary pricing algorithms and negotiation strategies may impose significant administrative and compliance costs on these organizations
  • Competitive concerns: Increased transparency of pricing methodologies could potentially reduce negotiating leverage or competitive advantages in drug pricing negotiations
  • Implementation scope: The extent to which consumer-level pricing information must be disclosed remains a point of interpretation, with implications for pharmacy operations and customer communication requirements

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

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