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.

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.”

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