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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>85964</law_id><section_number>38.2-3407.22</section_number><catch_line>Option for rebates to enrollees; protected information</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="38.2">Insurance</unit><unit label="chapter" level="2" order_by="1" identifier="34">Provisions Relating to Accident and Sickness Insurance</unit><unit label="article" level="3" order_by="1" identifier="1">General Provisions</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> As used in this section:
			&#x201C;<span class="dictionary">Carrier</span>&#x201D; has the same meaning as set forth in &#xA7; <a class="law" title="Health care provider panels" href="/38.2-3407.10/">38.2-3407.10</a>; however, &#x201C;<span class="dictionary">carrier</span>&#x201D; also includes any <span class="dictionary">person</span> required to be licensed pursuant to this title that offers or operates a managed care health <span class="dictionary">insurance</span> plan subject to the requirements of Chapter 58 (&#xA7; <a class="law" title="Definitions" href="/38.2-5800/">38.2-5800</a> et seq.) or that provides or arranges for the provision of <span class="dictionary">health care services</span>, <span class="dictionary">health plans</span>, networks, or provider <span class="dictionary">panels</span> that are subject to regulation as the business of <span class="dictionary">insurance</span>. &#x201C;<span class="dictionary">Carrier</span>&#x201D; also includes any health <span class="dictionary">insurance</span> issuer that offers health <span class="dictionary">insurance</span> coverage, as defined in &#xA7; <a class="law" title="Application of article; definitions" href="/38.2-3431/">38.2-3431</a>.
			&#x201C;<span class="dictionary">Enrollee</span>&#x201D; means any <span class="dictionary">person</span> entitled to <span class="dictionary">health care services</span> from a <span class="dictionary">carrier</span>.
			&#x201C;<span class="dictionary">Health care services</span>&#x201D; means items or services furnished to any individual for the purpose of preventing, alleviating, curing, or healing human illness, injury, or physical disability.
			&#x201C;<span class="dictionary">Health plan</span>&#x201D; means any individual or group health care plan, subscription <span class="dictionary">contract</span>, <span class="dictionary">evidence</span> of coverage, certificate, <span class="dictionary">health services plan</span>, medical or hospital services plan, accident or sickness <span class="dictionary">insurance</span> policy or certificate, managed care health <span class="dictionary">insurance</span> plan, or other similar certificate, policy, <span class="dictionary">contract</span>, or arrangement, and any endorsement or rider thereto, to cover all or a portion of the cost of <span class="dictionary">persons</span> receiving covered <span class="dictionary">health care services</span>, that is subject to <span class="dictionary">state</span> regulation and that is required to be offered, arranged, or issued in the Commonwealth by a <span class="dictionary">carrier</span> licensed under this title. &#x201C;<span class="dictionary">Health plan</span>&#x201D; includes a <span class="dictionary">state</span> or local government employer plan. &#x201C;<span class="dictionary">Health plan</span>&#x201D; does not mean (i) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. &#xA7; 1395 et seq. (<span class="dictionary">Medicare</span>), Title XIX of the Social Security Act, 42 U.S.C. &#xA7; 1396 et seq. (Medicaid), Title XXI of the Social Security Act, 42 U.S.C. &#xA7; 1397aa et seq. (CHIP), 5 U.S.C. &#xA7; 8901 et seq. (federal employees), or 10 U.S.C. &#xA7; 1071 et seq. (TRICARE) or (ii) accident only, credit or disability <span class="dictionary">insurance</span>, long-term care <span class="dictionary">insurance</span>, TRICARE supplement, <span class="dictionary">Medicare</span> Supplement, or workers&#x2019; compensation coverages.
			&#x201C;<span class="dictionary">Pharmacy benefits manager</span>&#x201D; has the same meaning as set forth in &#xA7; <a class="law" title="Limit on copayment for prescription drugs; permitted disclosures" href="/38.2-3407.15_4/">38.2-3407.15:4</a>.
			&#x201C;<span class="dictionary">Rebate</span>&#x201D; means (i) negotiated price concessions, including base price concessions and reasonable estimates of any price protection <span class="dictionary">rebates</span> and performance-based price concessions, that may accrue directly or indirectly to a <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, or <span class="dictionary">pharmacy benefits manager</span> during the coverage year from a manufacturer, dispensing pharmacy, or other <span class="dictionary">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 <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, or <span class="dictionary">pharmacy benefits manager</span> and serve to reduce the liability of a <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, or <span class="dictionary">pharmacy benefits manager</span> for a prescription drug. <a id="paragraph-307889" class="section-permalink" href="https://vacode.org/38.2-3407.22/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> When contracting with a <span class="dictionary">carrier</span> or <span class="dictionary">health plan</span> to administer pharmacy benefits, a <span class="dictionary">pharmacy benefits manager</span> shall offer the <span class="dictionary">carrier</span> or <span class="dictionary">health plan</span> the option of extending point-of-sale <span class="dictionary">rebates</span> to <span class="dictionary">enrollees</span> of the plan. <a id="paragraph-307890" class="section-permalink" href="https://vacode.org/38.2-3407.22/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> The provisions of this section shall only apply to a <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, or <span class="dictionary">pharmacy benefits manager</span> to the extent permissible under applicable <span class="dictionary">law</span>. <a id="paragraph-307891" class="section-permalink" href="https://vacode.org/38.2-3407.22/#C"><i class="fa fa-link"/></a></p></section>
						<section id="D"><p><span class="prefix-number">D.</span> In complying with the provisions of this section, a <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, <span class="dictionary">pharmacy benefits manager</span>, or its respective agents shall not publish or otherwise reveal information regarding the actual amount of <span class="dictionary">rebates</span> a <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, or <span class="dictionary">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 <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, or <span class="dictionary">pharmacy benefits manager</span> shall require any vendor or third <span class="dictionary">party</span> with which the <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, or <span class="dictionary">pharmacy benefits manager</span> <span class="dictionary">contracts</span> for health care or administrative services on behalf of the <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, or <span class="dictionary">pharmacy benefits manager</span> that may receive or have access to <span class="dictionary">rebate</span> information to comply with the provisions of this subsection related to protection of information regarding the amount of <span class="dictionary">rebates</span> a <span class="dictionary">carrier</span>, <span class="dictionary">health plan</span>, or <span class="dictionary">pharmacy benefits manager</span> receives on a product-specific, manufacturer-specific, or pharmacy-specific basis. <a id="paragraph-307892" class="section-permalink" href="https://vacode.org/38.2-3407.22/#D"><i class="fa fa-link"/></a></p></section>
						<section id="E"><p><span class="prefix-number">E.</span> The <span class="dictionary">Commission</span> may, pursuant to the provisions of &#xA7; <a class="law" title="Rules and regulations; orders" href="/38.2-223/">38.2-223</a>, adopt such rules and regulations as may be necessary to implement and enforce the provisions of this section. <a id="paragraph-307893" class="section-permalink" href="https://vacode.org/38.2-3407.22/#E"><i class="fa fa-link"/></a></p></section></text><history>2021, Sp. Sess. I, c. 304.</history><metadata></metadata></law>
