Manley Initiative to Lower Prescription Drug Costs Becomes Law

JOLIET, Ill. – Families and seniors will see relief from prescription drug price gouging under a new law led by state Rep. Natalie Manley, D-Joliet, cracking down on deceptive tactics big pharma middlemen use to unjustly inflate the cost of prescription medications.

“The Prescription Drug Affordability Act prioritizes the health of Illinoisans by curbing the influence of private corporations, which are driving smaller pharmacies out of business and taking home the padded profits,” said Manley. “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.”

The Prescription Drug Affordability Act (House Bill 1697) was signed into law Tuesday.

One of the major drivers of prescription costs is the role of Pharmacy Benefit Managers (PBMs), 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, nearly 80% of the market is controlled by only three large corporations.

Manley’s Prescription Drug Affordability Act, now law, regulates PBMs by banning several
deceptive tactics, including:

● Banning “steering” practices: This prohibits manipulating patients into using PBM-
affiliated pharmacies where the PBM has a financial interest.
● Ending unreasonable “specialty drug” classifications: This prevents the unnecessary
categorization of certain prescriptions that limit patient access and raises prices more.
● Requiring 100% rebate and fee remittance: PBMs would be mandated to pass on all
rebates and fees to the benefit plan sponsor, consumer or employer.
● Cracking down on corporate bonuses and overhead: PBMs will be required to submit
comprehensive annual financial reports, publicly disclosing how much of their spending
serves patients, and how much money is going toward corporate bonuses and
administrative costs.

Additionally, the Act establishes a grant program to support independent pharmacies in rural and underserved communities to protect patient access. This, coupled with landmark reforms against PBMs’ overreach, will deliver lower drug costs for residents and families statewide.

“Since last year I’ve led committees to study the faulty practices of PBMs contributing to escalating prescription drug prices,” said Manley. “These reforms are fair, well overdue, and protect both Illinois patients and the smaller pharmacies we rely on.”