H.577 establishes the Vermont Prescription Drug Discount Card Program, which will be administered by the Office of the State Treasurer. The program aims to pool prescription drug purchasing power with other states and organizations to reduce costs for Vermont residents. It allows the State Treasurer to collaborate with various entities to negotiate discounts, centralize purchasing, and establish volume discount contracts. Additionally, funds received by the program will be deposited into the Financial Literacy and Economic Empowerment Trust Fund to cover administrative costs. The bill also mandates that the State Treasurer report annually on the program's activities, including participation rates and savings achieved.

The bill amends existing laws to ensure that amounts paid by individuals for prescription drugs, including those using discount cards, are counted towards their out-of-pocket limits and deductibles under their health insurance plans. It also requires health insurers and pharmacy benefit managers to provide proof of payment forms for individuals who purchase drugs without using their insurance coverage. Furthermore, the Financial Literacy and Economic Empowerment Trust Fund's purpose is expanded to include supporting the Vermont Prescription Drug Discount Card Program. The act is set to take effect on July 1, 2026, and includes an appropriation of $50,000 for the program's development and implementation in fiscal year 2027.

Statutes affected:
As Passed By the House -- Official: 8-4093, 18-3612, 32-111
As Passed By the House -- Unofficial: 8-4093, 18-3612, 32-111
As Passed by Both House and Senate -- Official: 8-4093, 18-3612, 32-111
As Passed by Both House and Senate -- Unofficial: 8-4093, 18-3612, 32-111