IPhA, NCPA Cheer Illinois Law Reining In PBM Retaliation

HB3631 protects freedom of speech and promotes transparency into PBM business practices

NCPA August 11, 2023

SPRINGFIELD, Ill. (Aug. 11, 2023) – The Illinois Pharmacists Association and the National Community Pharmacists Association are applauding a new law in Illinois that prohibits retaliation by pharmacy benefit managers against pharmacists and pharmacies for disclosing information to courts, hearings, legislative commissions, law enforcement or other government agencies if there is reasonable cause to believe the disclosed information is evidence of violation of a state or federal law, rule, or regulation. HB3631, which was led by Rep. Hoan Huynh (D) and Sen. Mike Simmons (D), was signed into law by Gov. JB Pritzker (D) on Aug. 4, 2023. It has an effective date of July 1, 2023.

The top three PBMs control 80 percent of the market, and decide what medicines patients can take, where they must get them, and how much they pay. In recent years, they have leveraged their market power to implement abusive policies and practices that pad their profits at the expense of patients and pharmacies. Pharmacists who speak out oftentimes experience retaliation measures from PBMs that can include an exponential increase in audits, refusal to access future contracts and removal from preferred provider networks, among other punishments.

“PBMs for too long have been weaponizing contracting and auditing tactics to essentially force pharmacists into silence,” says Garth Reynolds, RPh, executive director of IPhA. “There’s more work to do to truly rein in these middlemen, but with HB3631, we can more freely share with government representatives how PBM policies harm pharmacy practice and our patients. IPhA is grateful to Rep. Huynh and Sen. Simmons for their leadership and support, and to Gov. Pritzker for signing this important bill into law.”

“For a marketplace to be free and healthy, there must be competition and transparency. PBM-insurers are fighting against both, even as policymakers at all levels of government look to crack down on business practices that stifle patient choice and disadvantage independent pharmacies,” says Joel Kurzman, director of state government affairs at NCPA. “This legislation is a great step forward in Illinois. Further PBM reforms and aggressive enforcement of policies like this one will be crucial if patients and taxpayers are to see the difference.”

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About IPhA
The Illinois Pharmacists Association is dedicated to enhancing the professional competency of pharmacists, advancing the standards of pharmacy practice, improving pharmacists’ effectiveness in assuring rational drug use in society, and leading in the resolution of public policy issues affecting pharmacists.  IPhA was founded in 1880.  To learn more, visit ipha.org |@ILPharmacists.

About NCPA
Founded in 1898, the National Community Pharmacists Association is the voice for the community pharmacist, representing over 19,400 pharmacies that employ nearly 240,000 individuals nationwide. Community pharmacies are rooted in the communities where they are located and are among America's most accessible health care providers. To learn more, visit www.ncpa.org.

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