{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3407.22.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3407.22.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3407.22.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3407.22.html"}],"law_id":85964,"edition_id":1,"section_id":85964,"structure_id":12994,"section_number":"38.2-3407.22","catch_line":"Option for rebates to enrollees; protected information","history":"2021, Sp. Sess. I, c. 304.","full_text":"A\n\nAs used in this section:\n\t\t\t“Carrier” has the same meaning as set forth in § 38.2-3407.10; however, “carrier” also includes any person required to be licensed pursuant to this title that offers or operates a managed care health insurance plan subject to the requirements of Chapter 58 (§ 38.2-5800 et seq.) or that provides or arranges for the provision of health care services, health plans, networks, or provider panels that are subject to regulation as the business of insurance. “Carrier” also includes any health insurance issuer that offers health insurance coverage, as defined in § 38.2-3431.\n\t\t\t“Enrollee” means any person entitled to health care services from a carrier.\n\t\t\t“Health care services” means items or services furnished to any individual for the purpose of preventing, alleviating, curing, or healing human illness, injury, or physical disability.\n\t\t\t“Health plan” means any individual or group health care plan, subscription contract, evidence of coverage, certificate, health services plan, medical or hospital services plan, accident or sickness insurance policy or certificate, managed care health insurance plan, or other similar certificate, policy, contract, or arrangement, and any endorsement or rider thereto, to cover all or a portion of the cost of persons receiving covered health care services, that is subject to state regulation and that is required to be offered, arranged, or issued in the Commonwealth by a carrier licensed under this title. “Health plan” includes a state or local government employer plan. “Health plan” does not mean (i) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid), Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal employees), or 10 U.S.C. § 1071 et seq. (TRICARE) or (ii) accident only, credit or disability insurance, long-term care insurance, TRICARE supplement, Medicare Supplement, or workers’ compensation coverages.\n\t\t\t“Pharmacy benefits manager” has the same meaning as set forth in § 38.2-3407.15:4.\n\t\t\t“Rebate” means (i) negotiated price concessions, including base price concessions and reasonable estimates of any price protection rebates and performance-based price concessions, that may accrue directly or indirectly to a carrier, health plan, or pharmacy benefits manager during the coverage year from a manufacturer, dispensing pharmacy, or other party in connection with the dispensing or administration of a prescription drug and (ii) reasonable estimates of any negotiated price concessions, fees, or other administrative costs that are passed through, or are reasonably anticipated to be passed through, to the carrier, health plan, or pharmacy benefits manager and serve to reduce the liability of a carrier, health plan, or pharmacy benefits manager for a prescription drug.B\n\nWhen contracting with a carrier or health plan to administer pharmacy benefits, a pharmacy benefits manager shall offer the carrier or health plan the option of extending point-of-sale rebates to enrollees of the plan.C\n\nThe provisions of this section shall only apply to a carrier, health plan, or pharmacy benefits manager to the extent permissible under applicable law.D\n\nIn complying with the provisions of this section, a carrier, health plan, pharmacy benefits manager, or its respective agents shall not publish or otherwise reveal information regarding the actual amount of rebates a carrier, health plan, or pharmacy benefits manager receives on a product-specific, manufacturer-specific, or pharmacy-specific basis. Such information shall be protected as a trade secret and shall not be public record or disclosed, directly or indirectly. A carrier, health plan, or pharmacy benefits manager shall require any vendor or third party with which the carrier, health plan, or pharmacy benefits manager contracts for health care or administrative services on behalf of the carrier, health plan, or pharmacy benefits manager that may receive or have access to rebate information to comply with the provisions of this subsection related to protection of information regarding the amount of rebates a carrier, health plan, or pharmacy benefits manager receives on a product-specific, manufacturer-specific, or pharmacy-specific basis.E\n\nThe Commission may, pursuant to the provisions of § 38.2-223, adopt such rules and regulations as may be necessary to implement and enforce the provisions of this section.","order_by":null,"text":{"0":{"id":307889,"text":"As used in this section:\n\t\t\t“Carrier” has the same meaning as set forth in § 38.2-3407.10; however, “carrier” also includes any person required to be licensed pursuant to this title that offers or operates a managed care health insurance plan subject to the requirements of Chapter 58 (§ 38.2-5800 et seq.) or that provides or arranges for the provision of health care services, health plans, networks, or provider panels that are subject to regulation as the business of insurance. “Carrier” also includes any health insurance issuer that offers health insurance coverage, as defined in § 38.2-3431.\n\t\t\t“Enrollee” means any person entitled to health care services from a carrier.\n\t\t\t“Health care services” means items or services furnished to any individual for the purpose of preventing, alleviating, curing, or healing human illness, injury, or physical disability.\n\t\t\t“Health plan” means any individual or group health care plan, subscription contract, evidence of coverage, certificate, health services plan, medical or hospital services plan, accident or sickness insurance policy or certificate, managed care health insurance plan, or other similar certificate, policy, contract, or arrangement, and any endorsement or rider thereto, to cover all or a portion of the cost of persons receiving covered health care services, that is subject to state regulation and that is required to be offered, arranged, or issued in the Commonwealth by a carrier licensed under this title. “Health plan” includes a state or local government employer plan. “Health plan” does not mean (i) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid), Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal employees), or 10 U.S.C. § 1071 et seq. (TRICARE) or (ii) accident only, credit or disability insurance, long-term care insurance, TRICARE supplement, Medicare Supplement, or workers’ compensation coverages.\n\t\t\t“Pharmacy benefits manager” has the same meaning as set forth in § 38.2-3407.15:4.\n\t\t\t“Rebate” means (i) negotiated price concessions, including base price concessions and reasonable estimates of any price protection rebates and performance-based price concessions, that may accrue directly or indirectly to a carrier, health plan, or pharmacy benefits manager during the coverage year from a manufacturer, dispensing pharmacy, or other party in connection with the dispensing or administration of a prescription drug and (ii) reasonable estimates of any negotiated price concessions, fees, or other administrative costs that are passed through, or are reasonably anticipated to be passed through, to the carrier, health plan, or pharmacy benefits manager and serve to reduce the liability of a carrier, health plan, or pharmacy benefits manager for a prescription drug.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":307890,"text":"When contracting with a carrier or health plan to administer pharmacy benefits, a pharmacy benefits manager shall offer the carrier or health plan the option of extending point-of-sale rebates to enrollees of the plan.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":307891,"text":"The provisions of this section shall only apply to a carrier, health plan, or pharmacy benefits manager to the extent permissible under applicable law.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":307892,"text":"In complying with the provisions of this section, a carrier, health plan, pharmacy benefits manager, or its respective agents shall not publish or otherwise reveal information regarding the actual amount of rebates a carrier, health plan, or pharmacy benefits manager receives on a product-specific, manufacturer-specific, or pharmacy-specific basis. Such information shall be protected as a trade secret and shall not be public record or disclosed, directly or indirectly. A carrier, health plan, or pharmacy benefits manager shall require any vendor or third party with which the carrier, health plan, or pharmacy benefits manager contracts for health care or administrative services on behalf of the carrier, health plan, or pharmacy benefits manager that may receive or have access to rebate information to comply with the provisions of this subsection related to protection of information regarding the amount of rebates a carrier, health plan, or pharmacy benefits manager receives on a product-specific, manufacturer-specific, or pharmacy-specific basis.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":307893,"text":"The Commission may, pursuant to the provisions of § 38.2-223, adopt such rules and regulations as may be necessary to implement and enforce the provisions of this section.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":12994,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":12993,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":214889,"object_type":"structure","relational_id":12994,"identifier":"1","token":"38.2\/34\/1","url":"\/38.2\/34\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12993,"edition_id":1,"name":"Provisions Relating to Accident and Sickness Insurance","identifier":"34","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":214887,"object_type":"structure","relational_id":12993,"identifier":"34","token":"38.2\/34","url":"\/38.2\/34\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":57593,"structure_id":12994,"section_number":"38.2-3400","catch_line":"Application of chapter","url":"\/38.2-3400\/","token":"38.2\/34\/1\/38.2-3400","metadata":false},{"id":72072,"structure_id":12994,"section_number":"38.2-3401","catch_line":"Forms of insurance authorized","url":"\/38.2-3401\/","token":"38.2\/34\/1\/38.2-3401","metadata":false},{"id":65240,"structure_id":12994,"section_number":"38.2-3402","catch_line":"Certification to accompany application","url":"\/38.2-3402\/","token":"38.2\/34\/1\/38.2-3402","metadata":false},{"id":83988,"structure_id":12994,"section_number":"38.2-3403","catch_line":"Fraudulent procurement of policy","url":"\/38.2-3403\/","token":"38.2\/34\/1\/38.2-3403","metadata":false},{"id":65279,"structure_id":12994,"section_number":"38.2-3404","catch_line":"Commission may establish rules and regulations for simplified and readable accident and sickness insurance policies","url":"\/38.2-3404\/","token":"38.2\/34\/1\/38.2-3404","metadata":false},{"id":62539,"structure_id":12994,"section_number":"38.2-3405","catch_line":"Certain subrogation provisions and limitations upon recovery in hospital, medical, etc., policies forbidden; 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orders","order_by":null,"url":"\/38.2-223\/"},{"id":58079,"section_number":"38.2-3407.10","catch_line":"Health care provider panels","order_by":null,"url":"\/38.2-3407.10\/"},{"id":73491,"section_number":"38.2-3407.15:4","catch_line":"Limit on copayment for prescription drugs; permitted disclosures","order_by":null,"url":"\/38.2-3407.15_4\/"},{"id":86404,"section_number":"38.2-3431","catch_line":"Application of article; definitions","order_by":null,"url":"\/38.2-3431\/"},{"id":77304,"section_number":"38.2-5800","catch_line":"Definitions","order_by":null,"url":"\/38.2-5800\/"}],"permalink":{"id":215067,"object_type":"law","relational_id":85964,"identifier":"38.2-3407.22","token":"38.2\/34\/1\/38.2-3407.22","url":"\/38.2-3407.22\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3407.22\/","token":"38.2\/34\/1\/38.2-3407.22","dublin_core":{"Title":"Option for rebates to enrollees; protected information","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3407.22","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Carrier<\/span>” has the same meaning as set forth in § 38.2-3407.10<\/a>; however, “carrier<\/span>” also includes any person<\/span> required to be licensed pursuant to this title that offers or operates a managed care health insurance<\/span> plan subject to the requirements of Chapter 58 (§ 38.2-5800<\/a> et seq.) or that provides or arranges for the provision of health care services<\/span>, health plans<\/span>, networks, or provider panels<\/span> that are subject to regulation as the business of insurance<\/span>. “Carrier<\/span>” also includes any health insurance<\/span> issuer that offers health insurance<\/span> coverage, as defined in § 38.2-3431<\/a>.\n\t\t\t“Enrollee<\/span>” means any person<\/span> entitled to health care services<\/span> from a carrier<\/span>.\n\t\t\t“Health care services<\/span>” means items or services furnished to any individual for the purpose of preventing, alleviating, curing, or healing human illness, injury, or physical disability.\n\t\t\t“Health plan<\/span>” means any individual or group health care plan, subscription contract<\/span>, evidence<\/span> of coverage, certificate, health services plan<\/span>, medical or hospital services plan, accident or sickness insurance<\/span> policy or certificate, managed care health insurance<\/span> plan, or other similar certificate, policy, contract<\/span>, or arrangement, and any endorsement or rider thereto, to cover all or a portion of the cost of persons<\/span> receiving covered health care services<\/span>, that is subject to state<\/span> regulation and that is required to be offered, arranged, or issued in the Commonwealth by a carrier<\/span> licensed under this title. “Health plan<\/span>” includes a state<\/span> or local government employer plan. “Health plan<\/span>” does not mean (i) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare<\/span>), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid), Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal employees), or 10 U.S.C. § 1071 et seq. (TRICARE) or (ii) accident only, credit or disability insurance<\/span>, long-term care insurance<\/span>, TRICARE supplement, Medicare<\/span> Supplement, or workers’ compensation coverages.\n\t\t\t“Pharmacy benefits manager<\/span>” has the same meaning as set forth in § 38.2-3407.15:4<\/a>.\n\t\t\t“Rebate<\/span>” means (i) negotiated price concessions, including base price concessions and reasonable estimates of any price protection rebates<\/span> and performance-based price concessions, that may accrue directly or indirectly to a carrier<\/span>, health plan<\/span>, or pharmacy benefits manager<\/span> during the coverage year from a manufacturer, dispensing pharmacy, or other party<\/span> in connection with the dispensing or administration of a prescription drug and (ii) reasonable estimates of any negotiated price concessions, fees, or other administrative costs that are passed through, or are reasonably anticipated to be passed through, to the carrier<\/span>, health plan<\/span>, or pharmacy benefits manager<\/span> and serve to reduce the liability of a carrier<\/span>, health plan<\/span>, or pharmacy benefits manager<\/span> for a prescription drug. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> When contracting with a carrier<\/span> or health plan<\/span> to administer pharmacy benefits, a pharmacy benefits manager<\/span> shall offer the carrier<\/span> or health plan<\/span> the option of extending point-of-sale rebates<\/span> to enrollees<\/span> of the plan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The provisions of this section shall only apply to a carrier<\/span>, health plan<\/span>, or pharmacy benefits manager<\/span> to the extent permissible under applicable law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In complying with the provisions of this section, a carrier<\/span>, health plan<\/span>, pharmacy benefits manager<\/span>, or its respective agents shall not publish or otherwise reveal information regarding the actual amount of rebates<\/span> a carrier<\/span>, health plan<\/span>, or pharmacy benefits manager<\/span> receives on a product-specific, manufacturer-specific, or pharmacy-specific basis. Such information shall be protected as a trade secret and shall not be public record or disclosed, directly or indirectly. A carrier<\/span>, health plan<\/span>, or pharmacy benefits manager<\/span> shall require any vendor or third party<\/span> with which the carrier<\/span>, health plan<\/span>, or pharmacy benefits manager<\/span> contracts<\/span> for health care or administrative services on behalf of the carrier<\/span>, health plan<\/span>, or pharmacy benefits manager<\/span> that may receive or have access to rebate<\/span> information to comply with the provisions of this subsection related to protection of information regarding the amount of rebates<\/span> a carrier<\/span>, health plan<\/span>, or pharmacy benefits manager<\/span> receives on a product-specific, manufacturer-specific, or pharmacy-specific basis. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The Commission<\/span> may, pursuant to the provisions of § 38.2-223<\/a>, adopt such rules and regulations as may be necessary to implement and enforce the provisions of this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nOPTION FOR REBATES TO ENROLLEES; PROTECTED INFORMATION (\u00a7 38.2-3407.22)\n\nA. As used in this section:\n\t\t\t“Carrier” has the same meaning as set forth in §\n38.2-3407.10; however, “carrier” also includes any person required\nto be licensed pursuant to this title that offers or operates a managed care\nhealth insurance plan subject to the requirements of Chapter 58 (§\n38.2-5800 et seq.) or that provides or arranges for the provision of health care\nservices, health plans, networks, or provider panels that are subject to\nregulation as the business of insurance. “Carrier” also includes any\nhealth insurance issuer that offers health insurance coverage, as defined in\n§ 38.2-3431.\n\t\t\t“Enrollee” means any person entitled to health care services from\na carrier.\n\t\t\t“Health care services” means items or services furnished to any\nindividual for the purpose of preventing, alleviating, curing, or healing human\nillness, injury, or physical disability.\n\t\t\t“Health plan” means any individual or group health care plan,\nsubscription contract, evidence of coverage, certificate, health services plan,\nmedical or hospital services plan, accident or sickness insurance policy or\ncertificate, managed care health insurance plan, or other similar certificate,\npolicy, contract, or arrangement, and any endorsement or rider thereto, to cover\nall or a portion of the cost of persons receiving covered health care services,\nthat is subject to state regulation and that is required to be offered,\narranged, or issued in the Commonwealth by a carrier licensed under this title.\n“Health plan” includes a state or local government employer plan.\n“Health plan” does not mean (i) coverages issued pursuant to Title\nXVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare),\nTitle XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid),\nTitle XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5\nU.S.C. § 8901 et seq. (federal employees), or 10 U.S.C. § 1071 et seq.\n(TRICARE) or (ii) accident only, credit or disability insurance, long-term care\ninsurance, TRICARE supplement, Medicare Supplement, or workers’\ncompensation coverages.\n\t\t\t“Pharmacy benefits manager” has the same meaning as set forth in\n§ 38.2-3407.15:4.\n\t\t\t“Rebate” means (i) negotiated price concessions, including base\nprice concessions and reasonable estimates of any price protection rebates and\nperformance-based price concessions, that may accrue directly or indirectly to a\ncarrier, health plan, or pharmacy benefits manager during the coverage year from\na manufacturer, dispensing pharmacy, or other party in connection with the\ndispensing or administration of a prescription drug and (ii) reasonable\nestimates of any negotiated price concessions, fees, or other administrative\ncosts that are passed through, or are reasonably anticipated to be passed\nthrough, to the carrier, health plan, or pharmacy benefits manager and serve to\nreduce the liability of a carrier, health plan, or pharmacy benefits manager for\na prescription drug.\n\nB. When contracting with a carrier or health plan to administer pharmacy\nbenefits, a pharmacy benefits manager shall offer the carrier or health plan the\noption of extending point-of-sale rebates to enrollees of the plan.\n\nC. The provisions of this section shall only apply to a carrier, health plan, or\npharmacy benefits manager to the extent permissible under applicable law.\n\nD. In complying with the provisions of this section, a carrier, health plan,\npharmacy benefits manager, or its respective agents shall not publish or\notherwise reveal information regarding the actual amount of rebates a carrier,\nhealth plan, or pharmacy benefits manager receives on a product-specific,\nmanufacturer-specific, or pharmacy-specific basis. Such information shall be\nprotected as a trade secret and shall not be public record or disclosed,\ndirectly or indirectly. A carrier, health plan, or pharmacy benefits manager\nshall require any vendor or third party with which the carrier, health plan, or\npharmacy benefits manager contracts for health care or administrative services\non behalf of the carrier, health plan, or pharmacy benefits manager that may\nreceive or have access to rebate information to comply with the provisions of\nthis subsection related to protection of information regarding the amount of\nrebates a carrier, health plan, or pharmacy benefits manager receives on a\nproduct-specific, manufacturer-specific, or pharmacy-specific basis.\n\nE. The Commission may, pursuant to the provisions of § 38.2-223, adopt such\nrules and regulations as may be necessary to implement and enforce the\nprovisions of this section.\n\nHISTORY: 2021, Sp. Sess. I, c. 304.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}