Manley Initiative Cracks Down on Pharmacy Benefit Managers, Lowers Prescription Drug Costs

SPRINGFIELD, Ill. – Working to lower prescription drug prices and limit predatory practices costing consumers, Chairperson of the Health Care Availability & Accessibility Committee, state Rep. Natalie Manley, D-Joliet, led a measure pushing new regulations for pharmacy benefit managers (PBMs) to reign in skyrocketing prescription drug costs and uplift local pharmacies.

“Allowing middlemen to drive-up the cost of prescription drugs can bar Illinoisans from accessing critical medications they rely on. Working on a remedy across aisles, this measure puts our residents’ health first by reigning in the power of PBMs who are putting smaller pharmacies out of business and soaking up padded profits,” said Manley. “This measure will also uplift these smaller pharmacies by providing grant opportunities to locations critical for patient access.”

PBMs are private corporations that negotiate the availability and price that insurance companies and pharmacies pay drug manufacturers for their products. Due to decades of industry consolidation, three PBMs control nearly 80% of the market, leaving them with huge leverage over drug prices. Manley’s House Bill 1697, or the Prescription Drug Affordability Act, aims to regulate PBMs by outlawing several deceptive tactics. These include banning “steering,” or manipulating patients to use PBM-affiliated pharmacies, ending the practice of unreasonably classifying certain prescriptions as “specialty drugs,” and requiring PBMs to remit 100% of rebates and fees to the benefit plans sponsor, consumer, or employer.

Manley has led several hearings since last year pertaining to PBMs in the Health Care Availability Accessibility Committee, where she investigated practices that harm patients and gathered information to craft prescription drug affordability strategies. Governor JB Pritzker supported the introduction of House Bill 1697 earlier this year.

“For years PBMs have been unaccountable and able to unfairly raise prescription prices,” said Manley. “By outlawing manipulative tactics used to prey on Illinoisans, residents and smaller pharmacies can expect to see some relief now that we’ve codified these regulations to ward out PBMs’ tyranny control of the market.”

House Bill 1697 passed out of both chambers this Spring session, and is expected to be signed by the Governor later this year.