SPRINGFIELD – State Senator Dave Koehler is championing two significant pharmacy bills aimed at protecting patient access to pharmacies and health care services by hospitals engaged in the federal 340B program.

“Our local hospitals and federal qualified health centers need this program to be able to provide healthcare services for the poor and uninsured. The corrections we have made in how this program works will make a difference to struggling communities throughout the state,” said Koehler (D-Peoria). “This will cover the expenses that otherwise would be passed on to patients who have insurance.”

House Bill 2371 would establish the patient access to Pharmacy Protection Act, which would prohibit pharmaceutical manufacturers from imposing restrictive conditions on hospitals and pharmacies under the federal 340B program. The measure would prohibit manufacturers from limiting the number of pharmacies a hospital can use. The bill would further require hospitals to report on an annual basis the use of those funds for charity care, thus providing transparency for the program.

House Bill 1697, the Prescription Drug Affordability Act, targets pharmacy benefit managers (PBMs), entities that manage prescription drug benefits for insurers. This bill would end harmful practices, such as “spread pricing,” where pharmacy benefit managers profit by charging insurers significantly more than what pharmacies receive. It also would restrict PBMs from profiting from the sale of drugs to pharmacies, and would require them to return 100% of pharmacy rebates back to the individuals or sponsoring organizations. It will also prevent pharmacy benefit managers from unfairly steering patients toward particular pharmacies and stops PBMs from limiting an individual’s access to a drug from a pharmacy by classifying it as a “specialty drug.”

“Our local pharmacies are vital to communities across Illinois, especially in smaller towns and underserved areas,” Koehler said. “Getting this bill approved means that pharmacy benefit managers who act as the middleman in the prescription drug industry will no longer have a strangle hold on consumers and neighborhood pharmacies,”

Both House Bill 2371 and House Bill 1697 passed the Senate Thursday.