PEORIA — State Senator Dave Koehler led a new law to end unfair practices by pharmacy benefit managers, in turn protecting local pharmacies and consumers.

"Pharmacy benefit managers have too often prioritized profits at the expense of patients and local pharmacies," said Koehler (D-Peoria). "This new law allows transparency and fairness, keeping health care services affordable and accessible for Illinois families."

House Bill 1697, the Prescription Drug Affordability Act, targets pharmacy benefit managers (PBMs), entities that manage prescription drug benefits for insurers. This law will end harmful practices, such as “spread pricing,” where pharmacy benefit managers profit by charging insurers significantly more than what pharmacies receive. It also will 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. Further, it prevents 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.”

"Local pharmacies serve as trusted health care resources, particularly in underserved and rural communities," Koehler said. "This law protects consumers and community pharmacies from PBM harmful practices and prevents pharmacy deserts across Illinois."

House Bill 1697 was signed into law Tuesday.