WASHINGTON — The signing of Illinois House Bill 1697 by Governor J.B. Pritzker has drawn sharply contrasting reactions from two key players in the prescription drug and pharmacy policy arena: the Pharmaceutical Care Management Association (PCMA) and the National Association of Chain Drug Stores (NACDS).
PCMA criticizes law as costly and counterproductive
PCMA, the national association representing pharmacy benefit managers (PBMs), expressed strong disappointment with the new law, arguing that it will drive up healthcare costs for patients and employers while doing little to address the root cause of high drug prices.
“We are disappointed with the misguided legislation that Governor Pritzker has signed that will hurt the ability of employers in Illinois to provide affordable health benefits to employees and their families,” PCMA said in a statement. “This legislation imposes a new tax on patients and health plan sponsors and will increase health care costs for everyone. It further removes choices for employers providing health benefits by dictating how they can contract with their pharmacy benefit manager (PBM) and restricts tools that lower prescription drug costs.”
PCMA also criticized the bill for restricting employer flexibility in managing prescription drug benefits and reiterated its stance that pharmaceutical manufacturers, not PBMs, are responsible for setting and raising drug prices.
“Lawmakers have passed 20 bills regulating PBMs since 2016, none of which have led to lower drug prices,” the group said. “To truly lower drug costs, we encourage legislators to focus on the entire prescription drug supply chain, namely Big Pharma who alone set and raise the price of their drugs.”
NACDS applauds major victory for patients and pharmacies
In stark contrast, NACDS celebrated the passage of HB 1697 as a milestone in the movement toward greater transparency, accountability, and affordability in prescription drug access.
Calling the legislation a “decisive victory,” NACDS praised the broad bipartisan support it received in the Illinois General Assembly, passing 56-1 in the Senate and 115-1-1 in the House, and hailed it as a model for other states.
“Governor J.B. Pritzker and the Illinois legislature have demonstrated remarkable leadership by enacting this comprehensive legislation,” said NACDS President and CEO Steven C. Anderson. “By pushing for greater transparency and responsibility from PBM middlemen, Illinois is taking a stand for more affordable prescription drugs and increased patient choice, while recognizing the essential role that pharmacies have in our neighborhoods.”
HB 1697 includes several key reforms: banning spread pricing, requiring PBMs to pass 100% of manufacturer rebates to health plans or patients, mandating detailed public reporting, and protecting 340B pharmacies from discriminatory practices. It also establishes the Critical Access Care Pharmacy Program to support rural and underserved communities.
Momentum builds for PBM reform
Illinois' move is part of a growing nationwide trend. According to the NACDS, 24 states enacted 33 PBM-related reform bills in 2024 alone, following the passage of more than 130 PBM laws between 2021 and 2023. Recent investigations by the Federal Trade Commission have further intensified scrutiny of PBM practices.
The new Illinois law begins taking effect immediately in some areas, including PBM registration and reporting requirements, while most reforms will be implemented starting January 1, 2026.
