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

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

“Cutting the cost of vital prescription drugs is one of the most substantive steps we can take forward to improve the lives of working people across Illinois,” Ryan said. “Medicine isn’t a luxury, it isn’t optional, it’s necessary a for a functional life. Lowering prices will raise the standard of living for thousands of Illinoisans, and I am proud to be fighting to make that happen.”

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.

Ryan’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.

“Big pharmaceutical companies are extorting patients because they know patients have to pay,” Ryan said. “I’m eager to keep making progress to prevent that and help the people of my community thrive.”

House Bill 1697 was signed into law recently.