Montpelier — The House Health Care Committee on Jan. 15 heard testimony on H.577, a bill that would authorize the state treasurer to establish the Vermont Prescription Drug Discount Card Program and to participate in a multistate consortium known as ArrayRx.

Jen Harvey of the Office of Legislative Counsel summarized the bill’s core provisions: it would add a new subchapter to Title 18 to create a treasurer‑administered discount card program, allow cooperation with other states and nongovernmental organizations, permit negotiated volume‑discount contracting with manufacturers and PBMs, authorize the treasurer to require reasonable fees to defray program costs, create a special program fund, and require annual reporting about participation and savings. The bill includes a one‑time appropriation of $50,000 for fiscal year 2027 to support start‑up costs and would take effect on July 1, 2027, Harvey said.

Connecticut Comptroller Sean Scanlon, who has overseen ArrayRx implementation in his state, told the committee his office runs the state health plan and that Connecticut’s experience shows meaningful savings. "We began rolling out the card in 2024," Scanlon said, and reported that Connecticut users are seeing "about an average of 80% savings for our residents, on generic drugs" and roughly $200 in annual savings for typical card users. Scanlon said ArrayRx works with a transparent PBM (Navitus) and is accepted at the large pharmacy chains and most independents in Connecticut.

A treasurer’s office representative, testifying for Vermont’s proposal, said the ArrayRx model would be administered operationally by Oregon on behalf of participating states while Vermont would focus on outreach and partnership. The treasurer’s office described eligibility as broad — "all it requires is your name, your date of birth, and your Vermont address" — and said cards download to a phone or can be obtained by phone. The office confirmed the $50,000 request is intended for initial marketing and outreach rather than to fund a new permanent staff line.

Committee members repeatedly pressed presenters on how discount‑card purchases interact with private insurance. Counsel and presenters agreed the core legal issue is whether out‑of‑pocket payments made at the point of sale under the discount card can be applied to a consumer’s deductible or to the plan qualifications for a health savings account. Counsel noted existing Title 8 health insurance provisions and federal HSA rules that can prevent certain outside payments from counting toward a deductible; several lawmakers described the point as unclear for Vermont and said they expect follow‑up clarification. "It may not apply to a deductible," a presenter said while explaining the consumer choice between paying a lower amount with the card or paying a higher insurance price that might count toward a deductible.

Witnesses addressed program funding and pharmacy impacts. Presenters said ArrayRx embeds a small administrative fee in the discounted price; those administrative dollars are collected at point of sale, pooled by Oregon, and allocated to the consortium’s operating budget based on each state’s utilization. Connecticut’s program leaders emphasized that ArrayRx’s reimbursement model covers pharmacies’ medication costs and dispensing fees to avoid driving independent pharmacies out of business.

Committee members also discussed which populations would benefit most: uninsured and underinsured Vermonters, seniors without Part D coverage, people whose specific drugs are not covered by their plans (the presenters cited GLP‑1 class weight‑loss drugs as an example), and younger people who face high deductibles. Presenters offered illustrative savings examples ranging from a few dozen dollars a month to several hundred dollars on high‑cost brand drugs.

Stephanie (program director for ArrayRx Connecticut), who manages day‑to‑day implementation in Connecticut, urged Vermont to pair community outreach and modest marketing investment with the technical platform: "Awareness is access," she said, describing door‑to‑door outreach, partnerships with trusted messengers and limited digital advertising as the drivers of enrollment in Connecticut.

No formal vote on H.577 was taken in the hearing. Committee members asked presenters for written testimony and follow‑up materials about insurance interactions, pharmacy participation details in Vermont and the mechanics of the embedded administrative fee; presenters agreed to provide additional information and to follow up with state agencies.

What’s next: The committee recessed for a short break and requested written testimony and technical follow‑up on deductible/HSA interactions and on program implementation details before further action on H.577.