Gov. Glenn Youngkin vetoed legislation for the second year in a row that would have established a Prescription Drug Affordability Board (PDAB).
The board would be an independent body of health and medical experts who would have the ability to set upper payment limits on particular prescription drugs if they believe pharmaceutical companies are charging too much.
Del. Karrie Delaney, D-Fairfax, sponsored the bill.
“I’m disappointed to see Governor Youngkin again take the side of big pharmaceutical companies over the people of Virginia,” Delaney said Monday. “Prices are up in all areas of the economy, and hardworking Virginia families need relief now. This bill would have taken crucial steps toward lowering the cost of medicine.”
Delaney accused Youngkin of caving to “Big Pharma” with this veto.
“We must ensure hardworking Virginians get the relief they need, and I hope the next governor will sign bipartisan legislation to lower the cost of medicine,” she said.
Both sides of the debate pressured the governor to either sign or veto the bill.
Freedom Virginia, a group that has been leading the charge on this bill, launched a new interactive tool on its website in February to display data on how much pharmaceutical companies spent on lobbying efforts between 2023 and 2024.
The Richmond Times-Dispatch reported in January that pharmaceutical companies spent $450,000 on lobbying efforts in 2024, doubling their spending in 2023.
“The governor has made his priority clear, once again siding with Big Pharma donors instead of fighting for hardworking Virginians,” said Freedom Virginia co-Executive Director Rhena Hicks. “The Prescription Drug Affordability Board bill would have helped ensure lower prescription costs for Virginians at a time when the cost of living continues to rise exponentially. As someone who lives with type-1 diabetes, I know how valuable affordable prescription drugs can be. All people should have access to life-saving medication at a reasonable price.”
Virginia Bio, a non-profit trade association with the stated mission of preserving Virginia’s life sciences industry, opposed the bill.
In February, John Newby, the CEO of Virginia Bio, wrote to Youngkin urging him to veto the bill.
“This year’s attempt to enact a PDAB, House Bill 1724, would, again, stifle necessary investments in continued research and development, threatening the ability of Virginia biotechnology companies to bring new medicines to market, decimating capital investment in Virginia pharmaceutical companies and reducing patient access to healthcare,” Newby wrote.
Newby praised the governor’s veto in a statement Monday.
“Virginia Bio thanks Governor Youngkin for his veto of House Bill 1724,” Newby said. “[It] would have hindered access to critical medications, stifled innovation, and curbed investments into Virginia’s burgeoning life sciences industry. Artificial drug price setting mechanisms are an unproven experiment that could devastate Virginia’s leading life sciences and biotechnology sectors and leave patients without access to critical care.”
PhRMA, which opposed the PDAB, says it supports other methods of lowering prices, including a rebate pass-through system, in which pharmacy benefit managers (PBMs) directly transfer all negotiated rebates and discounts to the plan sponsor.
A report by West Virginia’s state’s Office of the Insurance Commissioner showed that a state PBM rebate pass-through law cut the average 2025 small-group rate increase by 52%.
PhRMA says they were unable to gain any traction by pushing similar legislation in the past.