Creating an external reference pricing pilot program for prescription drugs.

HB 5556 creates a three-year pilot program allowing West Virginia's Medicaid program to set drug reimbursement rates based on the lowest prices paid for similar drugs in other industrialized countries (external reference pricing). It targets high-cost prescription drugs significantly impacting Medicaid spending, while excluding drugs without international price comparisons and ensuring continued access to medically necessary medications. The program requires annual reports to lawmakers on cost savings, drug availability, and manufacturer participation, and permits the state to negotiate rebates or adjust rates to prevent shortages. This pilot applies only to Medicaid drugs and does not affect private insurance or existing pharmaceutical contracts.