Illinois House Bill HB1018

Illinois 2025-2026 Regular Session

• Introduced: 1/9/25
• Refer: 1/9/25
• Refer: 2/4/25
• Refer: 3/21/25

Caption

INS-PHARMACY BENEFIT MANAGERS

Impact

The implications of HB1018 are significant for both consumers and the pharmaceutical industry. By eliminating steering practices, the bill aims to promote greater transparency and fairness in drug pricing and pharmacy choice. Supporters of the bill argue that it empowers consumers by allowing them to choose pharmacies that best meet their needs, thus potentially lowering their overall prescription costs. This could particularly benefit patients who rely on 340B entities, which serve low-income and uninsured communities by providing drugs at reduced costs.

Summary

House Bill 1018 proposes amendments to the Illinois Insurance Code that specifically target the practices of pharmacy benefit managers (PBMs). The bill prohibits PBMs from 'steering' covered individuals towards pharmacies in which they have an ownership interest, effectively restricting practices that could limit consumer choice. With this legislation, PBMs would no longer be able to influence the selection of pharmacies by requiring higher out-of-pocket costs for consumers who seek medications outside their preferred networks. This amendment is set to take effect on July 1, 2025.

Contention

Despite its intentions, the bill faces potential contention regarding the balance between regulation and the autonomy of PBMs. Opponents may argue that such prohibitive measures could disrupt existing contractual relationships between PBMs and insurers, ultimately leading to higher overall costs for health plans. Additionally, concerns may arise regarding the enforcement of the regulations outlined in the bill and their impact on the complex dynamics of the healthcare supply chain. Lawmakers must consider the implications for healthcare providers and patients alike, especially within the framework of existing discount programs.