SPRINGFIELD, IL (Chambana Today) — The Illinois Senate passed sweeping legislation aimed at lowering prescription drug costs and boosting support for independent pharmacies. The Prescription Drug Affordability Act, contained in House Bill 1697, now returns to the House for final approval.
The bill, championed by Sen. Dave Koehler (D-Peoria), targets pharmacy benefit managers (PBMs)—the powerful intermediaries between drug manufacturers, insurers, and pharmacies. It seeks to curb practices such as “spread pricing” and patient steering, which critics say inflate drug prices and hurt small, local pharmacies.
“PBMs extract large amounts of money from the system through opaque and often predatory tactics,” said Gov. JB Pritzker, who pushed for the measure in his February State of the State address. PBMs, often affiliated with large retail chains like CVS Caremark, have been accused of under-reimbursing independent pharmacies while favoring their own outlets—leading to the rise of pharmacy deserts in rural and underserved communities.
David Bagot, an independent pharmacist and president of the Illinois Pharmacists Association, told lawmakers that PBMs routinely reimburse his pharmacy below cost while overpaying their own.
The bill also includes:
- A ban on steering patients to PBM-affiliated pharmacies
- A ban on spread pricing
- Mandatory disclosure of rebate revenues
- A new fee on PBMs to fund up to $25 million annually in grants for independent and rural pharmacies
Industry lobbyists warned the bill could backfire. Lori Reimers of the Pharmaceutical Care Management Association argued that these measures could ultimately raise insurance premiums and drug prices for consumers.
Despite concerns, the bill passed 56-1 with bipartisan support. It now awaits House approval before heading to the governor’s desk.