                                 CODE OF VIRGINIA

PRESCRIPTION DRUG PRICE TRANSPARENCY; CIVIL PENALTY (§ 32.1-23.4)

A. As used in this section:
			&#8220;Nonprofit data services organization&#8221; means the nonprofit
organization with which the Commissioner has negotiated and entered into a
contract or agreement for the compilation, storage, analysis, and evaluation of
data submitted by health care providers pursuant to &#xA7; 32.1-276.4.
			&#8220;Pharmacy services administrative organization&#8221; means an entity
that provides administrative services to independent pharmacies, including
negotiation with pharmacy benefits managers and other entities, to support
pharmacies in contracting, compliance, and other operational areas.

B. The Department shall negotiate and enter into a contract or agreement with a
nonprofit data services organization to annually collect, compile, and make
available on its website publicly available information about prescription drug
prices submitted by health carriers, pharmacy benefits managers, and pharmacy
services administrative organizations pursuant to &#xA7; 38.2-3407.15:6,
wholesale distributors pursuant to &#xA7; 54.1-3436.1, and manufacturers
pursuant to &#xA7; 54.1-3442.02. Such data and information shall be made
available in aggregate in a form and manner that does not disclose or tend to
disclose proprietary or confidential information of any health carrier, pharmacy
services administrative organization, pharmacy benefits manager, wholesale
distributor, or manufacturer.

C. A health carrier, pharmacy services administrative organization, pharmacy
benefits manager, wholesale distributor, or manufacturer that fails to report
information required to be reported pursuant to this section or &#xA7;
38.2-3407.15:6, 54.1-3436.1, or 54.1-3442.02, respectively, shall be subject to
a civil penalty not to exceed $2,500 per day from the date on which such
reporting is required, to be collected by the Commissioner and deposited into
the Literary Fund. However, the Commissioner may reduce or waive a civil penalty
imposed pursuant to this section if he determines that the violation was
reasonable or resulting from good cause.

D. The Department shall adopt regulations to implement the provisions of this
section, which shall include (i) provisions related to the specification of
prescription drugs for the purpose of data collection and procedures for
auditing information provided by health carriers, pharmacy services
administrative organizations, pharmacy benefits managers, wholesale
distributors, and manufacturers and (ii) a schedule of civil penalties for
failure to report information required pursuant to this section or &#xA7;
38.2-3407.15:6, 54.1-3436.1, or 54.1-3442.02, which shall be based on the level
of severity of the violation.

E. All information submitted by a health carrier, pharmacy services
administrative organization, or pharmacy benefits manager pursuant to &#xA7;
38.2-3407.15:6, a wholesale distributor pursuant to &#xA7; 54.1-3436.1, or a
manufacturer pursuant to &#xA7; 54.1-3442.02 shall be confidential and exempt
from disclosure under the Virginia Freedom of Information Act (&#xA7; 2.2-3700
et seq.), except to the extent that such information is included in an
aggregated form in the report required pursuant to this section.

HISTORY: 2021, Sp. Sess. I, c. 304; 2025, c. 269.