SPRINGFIELD, Ill. (WAND) — An initiative led by Gov. JB Pritzker would hope to drop drug prices by regulating PBM’s.
Pharmacy Benefit Managers, or PBM’s for short, are known as the middlemen of the drug industry. They negotiate the price of drugs between drug makers, insurance companies and pharmacies.
The Governor under a plan supported by state Senate Democrats would limit how PBM’s can negotiate these prices.
“While once they served a purpose in our healthcare landscape they now serve as vertically integrated behemoths that drive up the cost of healthcare and put healthcare just that little bit farther out of reach for working families,” Emily Miller a Senior Advisor to the Governor said.
This legislation would stop PBM’s from spread pricing, where they charge Medicaid more money than what was paid for the drugs, catching a cut of the profit.
Opponent to the bill Lori Reimers representing the Pharmaceutical Care Management Association said Illinois has passed 20 laws regulating PBM’s and “drug prices haven’t gone lower.” Reimers also said this proposal will raise costs on drugs, not lower them.
The bill would also require annual auditing on drug prices and a market conduct exam. This legislation passed the Illinois Senate Executive committee on a 11-2 vote. It will now head to the Senate floor, where lawmakers could talk about it before session ends May 31.