Hernandez Fighting to Lower Prescription Drug Costs with New Law Cracking Down on Pharma Middlemen

AURORA, Ill. – Families and seniors will see relief from prescription drug price gouging under a new law passed by state Rep. Barbara Hernandez, D-Aurora, cracking down on the tactics big pharma middlemen use to artificially inflate the cost of lifesaving medications.

“Prescription drugs are a major financial burden contributing to the high cost-of-living, but they don’t have to be,” Hernandez said. “The Prescription Drug Affordability Act is cracking down on gimmicks prescription drug companies are using to pad their profits by jacking up the price of vital medications. Working people deserve better than these tactics, and this measure will help them get that.”

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, three PBMs control nearly 80% of the market, leaving them with huge leverage over drug prices.

Hernandez’s Prescription Drug Affordability Act, House Bill 1697, seeks to regulate 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 small 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.

“This is just one step on the road towards affordable healthcare for all, but I’m in this fight as long as it takes,” Hernandez said. “It’s a privilege to fight for something so essential for our community, because lifesaving prescription drugs are only lifesaving if they’re affordable.”

House Bill 1697 was recently signed into law.