SPRINGFIELD, Ill. (WAND) — Gov. JB Pritzker signed a monumental bill into law Tuesday to lower drug costs by cracking down on pharmacy benefit managers.

Lawmakers have spent years debating the best reforms for pharmacy middlemen.

The Prescription Drug Affordability Act could stop PBMs from spread pricing, where they charge Medicaid more money than was paid for drugs and receive a cut of the profit. It also allows Illinois to have full access to PBM records so the state can follow the money and prevent further exploitation.

"The most common ways that PBMs game the system to profit at the expense of Illinois families and employers is by steering consumers to pharmacies in which the PBMs have a financial interest, unfairly inflating medications costs, and arbitrarily classifying prescriptions as specialty drugs to charge customers more," Pritzker said.

House Bill 1697 streamlines the Critical Access Pharmacy Program to provide assistance to pharmacies in rural and underserved communities. Lawmakers earmarked $25 million in the Fiscal Year 2026 budget to create a new grant program to lift up independent pharmacies as well.

"You didn't take the easy path. You didn't bow to special interests," said Petersburg pharmacist David Baggett. "You stood with patients and providers against some of the most powerful corporations in our country and you won. We all won."

The measure passed out of the Senate on a 56-1 vote and received a 115-1 vote in the House.

Pharmacy benefit managers were quick to criticize Pritzker for signing the PBM reform plan into law. The Pharmaceutical Care Management Association said the new law will hurt the ability of employers to provide affordable health benefits to workers and their families. 

"Unfortunately, the legislation does nothing to address the fact that Big Pharma sets the price of the prescription drugs, and the price is the problem when it comes to some Illinoisans facing difficulty affording their prescription drugs," PCMA leaders stated. "Lawmakers have passed 20 bills regulating and restricting PBMs since 2016, none of which have led to lower drug prices." 

Pritzker also signed legislation Tuesday to ban prior authorization for outpatient mental healthcare and partial mental health treatment hospitalization. The new law will require insurance companies to report how they spend money from premiums to ensure consumer dollars are properly spent.

"The state is where true work is getting done," said Illinois Department of Insurance Director Ann Gillespie. "In Illinois, we take that seriously and we are here to get the work done for the people of Illinois."

House Bill 3019 passed out of the House on a 84-32 vote and received a 45-11 vote in the Senate. 

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