West Virginia Takes Legislative Action to Lower Drug Costs, Improve Health Equity

West Virginia passed a law that will compel payers and PBMs (Pharmacy Benefit Managers) to pass on medication savings to patients. Payers and PBMs are able to negotiate lower drug rates with pharmaceutical companies, leading to $187 billion saved in 2020 alone. By requiring these savings be passed on to patients, the ultimate result will be reduced costs for patients and improved health equity.

“This new law changes that broken system by simply requiring insurers and their PBMs to automatically account for the savings they receive in calculating what the patient pays at the pharmacy. This will help lower out-of-pocket costs, bring more predictability for patients and improve medication adherence and health equity, resulting in better health outcomes for West Virginians in a time when many are facing economic hardship due to the pandemic.” Read more here.

(Source: Scott LaGanga, PhRMA, 4/20/21)