FOR IMMEDIATE RELEASE
March 16, 2020
PUTT CONGRATULATES VIRGINIA STATE LEGISLATURE FOR PASSING SWEEPING ANTI-PBM ABUSE LEGISLATION
HB 1290 Outlaws Common PBM Practices Including Patient Steering, Retroactive Transaction Fee Clawbacks, Below-Cost Reimbursements and Acts of Retaliation
WINSTON-SALEM, NC (March 16,2020) – Pharmacists United for Truth and Transparency (PUTT) congratulates the Virginia state legislature for its recent passage of HB 1290, a comprehensive bill that prohibits pharmacy benefits managers (PBMs) from engaging in common anti-competitive practices responsible for driving hundreds of small business pharmacies out of business.
“We are beyond thrilled at the support this legislation received from both houses and Governor Northam,” said Scott Newman, PUTT president and an independent pharmacy owner in Chesapeake, VA. “A year ago this kind of legislation seemed all but impossible. But thanks to the hard work by Virginia Pharmacists Association Executive Director Christina Barrille, VPhA lobbyist Howard Estes and the pharmacy owners and staff who advocated their hearts out, the bill passed as written. It’s an extraordinary accomplishment.”
The new legislation takes significant ground to level the playing field between pharmacies - especially independent and community pharmacies - and PBMs. Once enacted, the new law will prohibit common PBM anti-competitive tactics including:
Other provisions under the new law prohibit provider accreditation standards or certification requirements more stringent than those required by the Virginia Board of Pharmacy; the use of spread pricing and the PBM practice of counting mail order pharmacies as proof of pharmacy provider “network adequacy” as required by law.
Pharmacists United for Truth and Transparency (PUTT) monitors PBM and other industry practices in the interest of improving the quality, safety and cost of patient care. To learn more about PUTT, visit TruthRx.org.
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