Governor Signs Bill to Regulate Pharmacy Benefit Managers (PBMs)

July 11, 2025

Last week Governor Pritzker signed into law Illinois House Bill 1697, which he initiated, that will increase transparency and oversight of pharmacy benefit managers (PBMs), particularly concerning costs and patient access to medications. 
 
Key provisions of the legislation include:

• Prohibiting “spread pricing” in which PBMs charge higher amounts to insurance plans than they pay to pharmacies
• Requiring PBMs to remit 100% of all rebates and discounts to the plan sponsor
• Prohibiting PBMs from steering patients to PBM’s own pharmacies or affiliated networks

This legislation also creates a grant program that will provide funding for pharmacies in rural and underserved areas of Illinois and/or those that treat a high number of Medicaid patients. The grant will be funded by revenues generated by a fee on PBMs.
 
For a complete wrap-up of the 2025 Spring session, access ISMS’ 2025 End-of-Session Legislative Report.
 
If you have questions, please contact ISMS Senior Vice President of State Legislative Affairs Erin O'Brien by email.