Committee hears support for H577 to join multistate prescription drug discount program

The Vermont Senate Health & Welfare Committee heard testimony April 16 on H577, a bill that would allow Vermont to join ARx, a multistate prescription drug discount program intended to give consumers an additional negotiated price at the pharmacy counter.

Charles Becker, staff attorney with the Office of the Healthcare Advocate, told the committee the HCA supports H577 as passed by the House and urged the Senate to preserve House language that would allow discount‑card purchases to count toward deductibles and annual out‑of‑pocket maxima. "H577 as passed by the House is a step forward for prescription drug affordability and the Senate should preserve the House language on counting," Becker said, adding a personal example of a chronic medication that cost him roughly $1,800 per month under a high‑deductible plan while pharmacies could acquire the same drug for about $50.

Becker and others pointed to broader evidence that greater price transparency and alternative negotiated prices can bring consumer costs closer to pharmacy acquisition costs; Becker cited a Green Mountain Care Board report that estimated potential savings of about $23.6 million on generic drugs under a cost‑plus reimbursement model.

Mary Block, deputy commissioner of insurance at the Department of Financial Regulation, told the committee DFR supports the bill and outlined the practical mechanics she expects: insurers would provide a web form for consumers to submit discount‑card purchases for review and credit — a process she compared to earlier COVID‑test reimbursement arrangements. Block said consumer education will be important, and she urged monitoring and stakeholder engagement to address pharmacy reimbursement concerns rather than an immediate program suspension. "Every opportunity we can give Vermonters to save money is a good opportunity," she said, while acknowledging independent pharmacies have legitimate concerns about low‑margin transactions.

Courtney Harness, director of legislative and government relations at Blue Cross and Blue Shield of Vermont, said the nonprofit insurer also supports the concept and is operationally prepared to accept member submissions to credit discount‑card spending toward deductibles and out‑of‑pocket maxima. Harness said Blue Cross already offers a built‑in discount program and does not expect a large number of its members to abandon plan pricing, noting that roughly two‑thirds of Vermonters are not Blue Cross members.

Colin Hillyard, advocacy director for AP Vermont, told the committee the advocacy group supports bulk purchasing and joining a multi‑state program as a way to lower costs for older adults and others on fixed incomes. He offered the organization’s help with outreach to raise program awareness among older Vermonters.

Committee members pressed witnesses on how consumers would ensure purchases are covered drugs and how to operationalize deductible crediting. Witnesses recommended consumer education, a simple pharmacy workflow (run insurance first, then compare ARx), insurer web forms for claims submission, and treasurer‑led outreach. Members also discussed adding narrow language to direct the treasurer to monitor effects on pharmacy viability and to report back.

The committee did not take a vote on H577 at the session; members expressed interest in drafting a limited monitoring provision and in returning to the bill after the treasurer’s office and stakeholders provide proposed language or data.

Provenance: Testimony and exchanges on H577 appeared beginning when the committee announced the bill (SEG 011) and continued through witness testimony and committee discussion about monitoring and outreach (topic end SEG 657).