Bill regulating pharmacy benefit managers signed into law

SPRINGFIELD, Ill. (WAND) - A bill focused on providing relief for independent pharmacies was signed into law.

House Bill 465 was sponsored by State Senator Andy Manar (D-Bunker Hill) and signed by Governor JB Pritzker Friday.

Sen. Manar said pharmacy benefit managers (PBMs), who negotiate drug prices on behalf of insurers, are using their position to drive up prices and get rid of competition.

This puts local, rural pharmacies at a disadvantage.

This law will impose Illinois' first ever oversight of PBMs.

"It's vital for consumers, taxpayers, and pharmacies to curtail the PBM abuse which is costing Illinois hundreds of millions of dollars annually," said Owen Sullivan of Sullivan Drugs in Carlinville, Gillespie, Hillsboro, and Litchfield.

PBMs are largely unregulated, although they manage public money through the Medicaid program.

"PBMs line their pockets at the expense of small businesses and consumers who have no choice but to buy lifesaving drugs at exorbitant prices," Sen. Manar said. "For years, these middle men have been able to exert their influence on the pharmaceutical industry with essentially no oversight. It's time to crack down on unfair practices that target some of the most vulnerable people in our communities."

The law goes into effect Jan. 1, 2020.