State rep says new Illinois law will lower prescriptions cost

A new law should give Illinoisans some relief against prescription drug prices – while protecting patient access in rural and underserved communities.

The Prescription Drug Affordability Act in House Bill 1697 was signed into law on July 1.

State Rep. Natalie Manley D-Joliet led the initiative, according to a news release from Manley’s office.

The Prescription Drug Affordability Act curbs ”the influence of private corporations,“ Manley said in the release, referring to Pharmacy Benefit Managers.

Additionally, the act will protect patient access to prescription medication by establishing a grant program to support independent pharmacies in “rural and underserved communities,” according to the release.

What are Pharmacy Benefit Managers?

Pharmacy Benefit Managers are private corporations that “negotiate the availability and price that insurance companies and pharmacies pay drug manufacturers for their products,” according to the release.

However, just three corporations control nearly 80% of the market due to “decades of industry consolidation,” according to the release.

“By outlawing the deceptive tactics used to raise drug prices, residents and smaller pharmacies can anticipate some relief, lowered costs of their prescriptions and increased access to them,” Manley said in the release.

Pharmacy Benefit Managers may no longer steer patients into patronizing “PBM-affiliated pharmacies where the PBM has a financial interest,” according to the release.

Additionally, Pharmacy Benefit Managers must end unreasonable specialty drug classifications, which limit patient access and increase drug prices, according to the release.

Pharmacy Benefit Managers are also now mandated to pass all rebates – as well as fees – to the benefit plan sponsor, consumer or employer, according to the release.

Finally, Pharmacy Benefit Managers must publicly disclose “how much of their spending serves patients, and how much money is going toward corporate bonuses and administrative costs” by submitting “comprehensive” financial reports each year, according to the release.