Virginia prohibits spread pricing in Medicaid program

NCPA April 15, 2020

Virginia Gov. Ralph Northam (D) signed HB 1291, which prohibits PBMs that administer benefits for the commonwealth's Medicaid managed care program from engaging in spread pricing. This move came after a state report found that PBMs pocketed $29 million from Virginia Medicaid. The legislation was sponsored by Del. Keith Hodges (R), an independent pharmacist who also sponsored earlier enacted legislation containing protections from PBM abuses.