Prescription Drug Affordability Act: New Illinois Law Lowers Drug Costs and Targets PBM Practices

High Cost of Prescription Drugs: Concept prescription bottles with gavel

In the July 9, 2025 article – Manley’s Prescription Drug Affordability Act, now law, Regulates PBMs by Banning Several Deceptive Tactics

Prescription Drug Prices in Illinois Set to Drop Thanks to New Law Targeting Big Pharma Middlemen

Illinois families, seniors, and independent pharmacies are expected to see much-needed relief from skyrocketing prescription drug prices under the Prescription Drug Affordability Act, recently signed into law. Championed by State Rep. Natalie Manley (D-Joliet), the legislation takes aim at the hidden tactics used by big pharmaceutical middlemen that inflate costs for everyday consumers.

What Is the Prescription Drug Affordability Act?

The new law—House Bill 1697—is designed to regulate the deceptive practices of Pharmacy Benefit Managers (PBMs). These private corporations act as intermediaries between drug manufacturers, insurance companies, and pharmacies. Over time, PBMs have gained significant control over the market, with just three corporations managing nearly 80% of the industry. This has led to inflated prices, limited access to medications, and the decline of local pharmacies.

Rep. Manley’s law aims to restore balance by enforcing transparency and prioritizing patient care over corporate profits.

“The Prescription Drug Affordability Act prioritizes the health of Illinoisans by curbing the influence of private corporations,” said Rep. Manley. “By outlawing the deceptive tactics used to raise drug prices, residents and smaller pharmacies can anticipate some relief.”

Key Reforms in the New Law

Here’s what the Prescription Drug Affordability Act does to protect Illinois consumers:

Bans PBM “Steering” Practices: Prevents PBMs from directing patients to use only pharmacies they financially benefit from.
Eliminates Unfair Drug Classifications: Stops PBMs from arbitrarily labeling drugs as “specialty medications,” which often leads to inflated costs.
Mandates Full Rebate Transparency: Requires PBMs to pass 100% of manufacturer rebates and fees to employers, insurance plans, or consumers.
Increases Financial Transparency: PBMs must publicly disclose annual financial reports, showing how much spending benefits patients versus funding corporate bonuses.

Support for Independent Pharmacies

In addition to regulating PBMs, the law also introduces a grant program for independent pharmacies, especially those in rural and underserved areas. This is critical for preserving access to medications for patients in regions where big chain pharmacies are not present.

“These reforms are fair, well overdue, and protect both Illinois patients and the smaller pharmacies we rely on,” Manley added.

Why This Law Matters

Prescription drug affordability is a growing concern across the U.S., but Illinois is taking a strong step forward with this legislation. By putting patients before profits and ensuring small pharmacies can continue to serve their communities, this law sets a new standard for pharmaceutical transparency and consumer protection.

Conclusion

With the passage of the Prescription Drug Affordability Act, Illinois is holding pharmaceutical middlemen accountable. This landmark law not only lowers drug costs but also empowers local pharmacies and protects vulnerable residents from corporate exploitation. It’s a win for patients, families, and small businesses across the state.