Dr. Piyush Vyas, President | Illinois State Medical Society
Dr. Piyush Vyas, President | Illinois State Medical Society
Last week, Governor Pritzker signed Illinois House Bill 1697 into law. This legislation, which the governor initiated, aims to enhance transparency and oversight of pharmacy benefit managers (PBMs) with a focus on costs and patient access to medications.
The new law includes several key provisions. It prohibits "spread pricing," a practice where PBMs charge insurance plans more than they pay pharmacies. Additionally, it mandates that PBMs remit 100% of all rebates and discounts to the plan sponsor. The legislation also prevents PBMs from directing patients to their own pharmacies or affiliated networks.
Moreover, the law establishes a grant program designed to support pharmacies in rural and underserved areas of Illinois or those serving a significant number of Medicaid patients. The grants will be funded by fees collected from PBMs.
For further details on the 2025 Spring session, readers can refer to ISMS’ 2025 End-of-Session Legislative Report. For questions, Erin O'Brien, ISMS Senior Vice President of State Legislative Affairs, is available via email.
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