PBM reform bill passes the Illinois Senate with bipartisan support

SPRINGFIELD, Ill. (WAND) — A bill led by Gov. JB Pritzker's office to drop drug prices through PBM reformed passed the Illinois Senate Thursday.

Pharmacy Benefit Managers, or PBM's for short are known as the middlemen of the drug industry, negotiating a price between insurance companies, drug makers and pharmacies.

In recent times, advocates for the bill said that PBM's have been taking money away to cut an even larger profit for themselves. PBM's do something called spread pricing, where they charge Medicaid and private insurers much more money than the actual cost of the drug, cashing in a profit for themselves.

The bill championed by state Sen. Dave Koehler (D-Peoria) would ban the practice of spread pricing. He said on the Senate floor that from this change alone $50 million would be saved.

"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."

This proposal would also limit how much of the rebate PBM's can keep. It would require 100% of the rebate fund to be returned to the appropriate organization.

On the floor the plan received bipartisan support. State Sen. Dale Fowler (R-Harrisburg) said this bill will protect brick and mortar pharmacies across Illinois.

"To the local pharmacies throughout the state, know that we see your impact, we understand your challenges and we will continue to be a strong advocate for your needs here in Springfield," Fowler said.

The legislation passed the Senate floor on a bipartisan 56-1 vote. The bill will now head to the House, where lawmakers could talk about it before session ends May 31.