This bill establishes the Vermont Prescription Drug Discount Card Program, administered by the State Treasurer, to help residents reduce prescription drug costs. It creates a program that pools Vermont's purchasing power with other states and organizations to negotiate lower prices directly with drug manufacturers, aiming to lower costs for all Vermont residents. The program will require the Treasurer to collect reasonable fees to cover costs, report annually on participation and savings, and submit an implementation report by 2027. The bill also allocates $50,000 for initial program development in fiscal year 2027.
This bill eliminates a requirement for Vermont's Department of Vermont Health Access to annually compile and share lists of prescription drugs with significant price increases (50%+ over five years or 15%+ in a year). The Department would no longer need to create these lists, which previously included details on cost increases, drug types (generic/brand), and spending data for the Office of the Attorney General and Green Mountain Care Board. The change directly affects the Department's administrative duties under existing prescription drug cost transparency rules. Other provisions in the bill adjust committee memberships, update health insurance market language, and modify Medicaid eligibility and doula service coverage timelines, but the core policy change is removing the annual drug price reporting requirement.
H.577 establishes the Vermont Prescription Drug Discount Card Program, administered by the State Treasurer, to help all Vermont residents lower prescription drug costs. The program pools purchasing power with other states, territories, and organizations to negotiate discounts directly with drug manufacturers and centralize purchasing. It requires the Treasurer to report annually on participation and savings, may charge reasonable fees to cover costs, and includes $50,000 in startup funding for development. The program takes effect on July 1, 2026, with implementation reporting due by January 2027.
This bill increases transparency around prescription drug costs in Vermont. It prohibits pharmacy benefit managers from requiring patients to pay more than the drug's average cost plus a standard dispensing fee (based on Vermont Medicaid rates). Pharmacies must post notices informing patients about available price options, including cash prices. Hospitals must report annual details about their participation in the federal 340B drug discount program to the Green Mountain Care Board, and health insurers must send patients annual reports showing actual drug spending on their behalf. These requirements directly affect patients, pharmacies, insurers, and healthcare providers.
H.207 requires health insurers in Vermont to cover all diabetes treatments (including equipment, supplies, and self-management education) without restricting providers to those under contract with the insurer. It also prohibits cost-sharing like copays or deductibles for these covered services. The bill applies to all standard health insurance plans issued on or after January 1, 2026, directly affecting Vermont residents with diabetes who have health insurance. It modifies existing law to ensure comprehensive, affordable access to diabetes care by eliminating insurer-imposed provider restrictions and cost barriers.
This Vermont bill (H 266) strengthens protections for hospitals and pharmacies participating in the federal 340B drug pricing program. It prohibits drug manufacturers from discriminating against 340B-covered entities or their contract pharmacies (e.g., by restricting access to discounted drugs or demanding excessive data), and requires manufacturers to offer 340B discounts at the time of purchase instead of deferred rebates. The bill also mandates annual reporting by participating hospitals on 340B drug costs, payments received, and how revenue supports community care programs. These provisions apply to Vermont hospitals using the federal 340B program and their contracted pharmacies, effective immediately after the governor signed it on June 11, 2025.
This bill prohibits pharmacy benefit managers (PBMs) from owning or operating pharmacies within Vermont. It directly affects PBMs and pharmacies by preventing PBMs from having financial or operational control over pharmacy locations. The key provision would amend Vermont law to ban such ownership or operation arrangements, aiming to separate pharmacy management from benefit management. This change applies specifically to pharmacies licensed in Vermont and would take effect if the bill is enacted. The bill was referred to the Health Care Committee for review in February 2025.
