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Senator Aaron Rouse Celebrates the Passage of the Save Local Pharmacies Act in the Virginia Senate

In a historic 40-0 vote, the Virginia Senate unanimously passed Sen. Rouse’s bill to realign Medicaid under a single, transparent, state-contracted Pharmacy Benefit Manager (PBM)

RICHMOND — Today, Senator Aaron R. Rouse’s “Save Local Pharmacies” Act unanimously passed the Virginia Senate in a unanimous 40-0 vote.

Sen. Aaron Rouse released the following statement in regards to the bill’s passage:

“This bill is a landmark bipartisan initiative designed to eliminate pharmacy deserts, protect access to essential healthcare services, and lower costs for Virginians. Local pharmacies are a cornerstone of community healthcare, and this legislation is a major step forward in ensuring they continue to serve communities across the state.”

Over 20 counties in Virginia have 0 or just 1 pharmacy, leaving many residents without easy access to life-saving medications and vaccines. Medicaid pharmacies are reimbursed an unsustainable average of $1.09 per prescription — far below the $10.65 dispensing cost.

The Save Local Pharmacies Act will:

  • Realign Medicaid’s pharmacy benefit under a single, transparent, state-contracted Pharmacy Benefit Manager (PBM) for greater efficiency and oversight.
  • Establish direct, state contracting for prescription benefits, eliminating multiple PBMs as middlemen in Medicaid’s prescription process, and shifting responsibility back to the state.
  • Consolidate PBMs, leading to reduced administrative fees, focused oversight, and better negotiating power for drug pricing, rebates, and formulary management.
  • Ensure transparency by disclosing actual drug pricing, rebates, and administrative costs for analysis.
  • Save Virginia taxpayers a minimum of $39 million annually in administrative costs.
  • Protect pharmacy access for underserved communities, improving local pharmacies’ ability to serve Medicaid patients and provide affordable, personalized care.

Similar legislation in West Virginia, Kentucky, and Ohio has already shown significant cost savings and preserved pharmacy access. West Virginia now saves over $54 million annually, while Kentucky estimates savings of $282 million from 2021-2023, and Ohio saves $150 million annually through similar reforms.

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