NORFOLK, Va. — A bipartisan group of lawmakers has introduced the Save Local Pharmacies Act, aimed at securing essential healthcare and reducing costs for Virginians.
Sen. Aaron Rouse, D-Virginia Beach, and Del. Katrina Callsen, D-Charlottesville, will present the bill in this year’s legislative session. The proposal seeks to realign Virginia’s Medicaid pharmacy benefit under a single state-contracted pharmacy benefits manager (PBM) to save families and protect pharmacists.
Dr. Anna Peoples, owner of Peoples Pharmacy in Norfolk and a pharmacist with over 30 years of experience, emphasized the urgency of the legislation. She noted that many Virginians struggle to access essential health care, including medications and vaccines.
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"It seems like it's profits over health. If you don't have your health, you don't have anything," Dr. Peoples said.
She has witnessed numerous pharmacies close their doors due to the influence of Pharmacy Benefit Managers, who act as intermediaries between drug manufacturers and pharmacies. Dr. Peoples explained that Medicaid reimburses pharmacies an average of $1 per prescription, far less than the average $10 cost of dispensing.
"Not only does it scare me, but it should scare the entire population of Virginia because that will decrease access to health care for many Virginians," she said.
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The Virginia Pharmacy Association supports the Save Local Pharmacies Act, stating that it will help both independent and chain pharmacies.
If passed, the bill would instruct the Department of Medical Assistance Services to evaluate actual drug pricing, rebates, and administrative costs, allowing the state to exercise oversight for cost efficiency. The new PBM would be required to ensure pharmacy access in underserved areas.
"We're looking for legislation that will allow us to stay in business while also advocating for changes in how businesses operate at the state and federal level," Dr. Peoples added.
Senator Rouse explained that the Save Local Pharmacies Act aims to streamline Medicaid’s pharmacy benefit, which should lead to savings for both Virginians and the state. He expressed concern about the increasing number of community pharmacies closing, resulting in areas being designated as pharmacy deserts.
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If the bill becomes law, it could save the Commonwealth nearly $40 million annually in administrative costs.
