Health News Illinois reported- Proposals to reform and audit the 340B program were signed into law Friday by Gov. JB Pritzker.
The two bills are the culmination of more than a year of discussions around the future of the program, which gives providers access to discounted drugs.
One proposal would bar drugmakers from imposing any restriction on the ability of a 340B covered entity to contract with or designate a 340B contract pharmacy, including restrictions related to the number, location, ownership or type of pharmacy.
Other provisions would have required covered entities to dispense or administer 340B drugs only when in connection with an outpatient healthcare service received by the patient within 18 months.
Those concerns led to a second bill to be filed this spring.
A companion plansigned by Pritzker looks to address concerns raised during negotiations that called for greater transparency in the program.
That law tasks the Department of Insurance with auditing the program, granting the agency authority to request that all 340B-covered entities and pharmaceutical manufacturers doing business in the state provide data related to the program.
The report is due to lawmakers by July 2028.
The proposal also gives the Attorney General’s Office the authority to issue fines against entities that do not comply with the audit. Any funds collected would be deposited into the office’s State Projects and Court Ordered Distribution Fund.
Reforms to the program have been a priority for groups like the Illinois Primary Health Care Association, who praised Pritzker for his support.
“At a time when so much about the future of healthcare feels uncertain, (Pritzker’s) willingness to act gives our health centers and the patients they serve a real measure of stability,” IPHCA CEO Ollie Idowu said in a statement. “By signing these bills, the governor is standing with the patients who have the fewest options and the providers who show up for them every single day.”
Illinois Health and Hospital Association CEO A.J. Wilhelmi praised Pritzker for taking action to “protect access to care for vulnerable patients and communities across Illinois.”
“For more than three decades, the 340B program has served as a critical lifeline — helping hospitals stretch limited resources to expand access to affordable medications, support chronic disease management and behavioral health services, and address longstanding disparities in care,” Wilhelmi said. “This legislation preserves these vital patient benefits while also enhancing transparency and accountability around the program, ensuring policymakers and the public have greater insight into how 340B savings are reinvested to meet community health needs.”
The proposals faced stiff opposition from the Pharmaceutical Research and Manufacturers of America, who have raised concerns about how providers are abusing the program.
PhRMA reiterated that point on Friday.
“Across the country and here in Illinois, 340B is driving up costs for patients, taxpayers and employers instead of ensuring that these savings reach those who need them most,” it said. “PhRMA will continue working with policymakers to advance solutions that protect patients.”
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