No to both
1 is a violation of due process in proposal.
2 is a cipher; it proposes to conserve state funds by reducing health costs; however, the state would not be able to negotiate as the measure would require (Veterans Affairs has a better negotiating position than state health care agencies); which would in effect place an embargo that prevents the state from purchasing any such drugs at all, leading to state residents getting sub standard health care.
This, plus issue 2 would lead to an increase in drug prices for people on private insurance plans.