The Illinois General Assembly has overwhelmingly approved the Prescription Drug Affordability Act (HB 1697), a sweeping measure designed to lower prescription drug costs and bolster independent pharmacies across the state. The bill now awaits the signature of Governor J.B. Pritzker, who has already indicated his strong support.

Key Provisions of HB 1697

• Crackdown on Pharmacy Benefit Manager (PBM) Practices: The new law targets Pharmacy Benefit Managers, middlemen who negotiate drug prices between insurers, drug manufacturers, and pharmacies. HB 1697 prohibits PBMs from steering patients exclusively to their own affiliated pharmacies through cost manipulation or restrictions. It also bans the practice of “spread pricing,” where PBMs charge insurers more than they reimburse pharmacies and pocket the difference.
• Financial Transparency: PBMs will now be required to pass on 100% of manufacturer rebates to insurance plan sponsors, rather than keeping a share for themselves. They must also report annually to state regulators the total value of rebates received, increasing oversight and accountability in the system.
• Support for Independent Pharmacies: The law introduces a $15 annual fee per person covered by a PBM, generating up to $25 million per year. These funds will be distributed as grants to pharmacies in rural areas, low-income neighborhoods, and so-called “pharmacy deserts”, communities with limited access to medications. The Illinois Department of Commerce and Economic Opportunity will administer these grants.

PBMs have long been criticized for opaque business practices that critics say drive up drug prices and disadvantage independent pharmacies. By mandating transparency and redirecting financial benefits to consumers and local businesses, Illinois lawmakers hope to curb rising drug costs and prevent further closures of community pharmacies. 

The bill passed with near-unanimous support: 56–1 in the Senate and 115–1 in the House. Only two Republican lawmakers—Senator Dave Syverson and Representative Jeff Keicher—voted against it.

Governor Pritzker is expected to sign HB 1697 into law in the coming days. If enacted, the Prescription Drug Affordability Act will take effect in the next fiscal year, with the first round of grants and regulatory changes expected to roll out soon after.