summary
Introduced
02/06/2026
02/06/2026
In Committee
02/06/2026
02/06/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the 340B Integrity Act. Defines terms. Provides that, beginning January 1, 2027, 340B covered entities shall not bill any medical assistance fee-for-service or medical assistance managed care programs under the Illinois Public Aid Code for 340B drugs. Provides that, beginning July 1, 2026 a 340B covered entity shall use 80% of 340B profits from the prior year to decrease at the point of sale, including at the 340B contract pharmacy, the out-of-pocket costs paid for 340B drugs that are dispensed or administered to low-income patients of the 340B covered entity. Provides that, on or before September 1, 2026, and on or before September 1 of each year thereafter, each 340B covered entity shall annually report to the Department of Insurance, with respect to the 340B covered entity and separately for each offsite outpatient facility associated with the 340B covered entity, the specified information about the prior year. Provides that, on or before December 31, 2026, the Department of Central Management Services shall submit a report to the General Assembly on any impact to the State employee health plan arising from 340B covered entity purchases, 340B contract pharmacy arrangements, and general practices related to 340B drugs, regardless of whether the 340B drugs were self-administered or provider-administered. Provides that the report shall include, but not be limited to, an analysis of foregone rebates, the impact on premiums, and the impact to State employee out-of-pocket costs. Provides that, on or before December 31, 2026, the Department of Healthcare and Family Services shall report to the General Assembly on certain items for total aggregated covered outpatient drug units dispensed or administered in the State for the prior calendar year in connection with the medical assistance program under the Illinois Public Aid Code, broken out by fee-for-service and by each managed care plan. Makes other changes. Effective immediately.
AI Summary
This bill, titled the 340B Integrity Act, introduces several changes related to the 340B drug discount program, a federal program that allows certain healthcare facilities (referred to as "340B covered entities") to purchase outpatient drugs at significantly reduced prices. Beginning January 1, 2027, these entities will no longer be allowed to bill state medical assistance programs, including fee-for-service and managed care plans, for drugs obtained through the 340B program. Furthermore, starting July 1, 2026, 340B covered entities must use 80% of their profits generated from the 340B program in the previous year to reduce the out-of-pocket costs for low-income patients who receive 340B drugs, whether dispensed by the entity itself or by a "340B contract pharmacy," which is a pharmacy that partners with the entity to dispense these drugs. The bill also mandates annual reporting to the Department of Insurance by 340B covered entities starting September 1, 2026, detailing their 340B drug acquisition costs, payments received, patient prescription data, and costs associated with contract pharmacies and charity care. Additionally, the Department of Central Management Services is required to report by December 31, 2026, on the impact of 340B practices on the State employee health plan, including potential effects on rebates, premiums, and employee costs, while the Department of Healthcare and Family Services will also report by the same date on the usage and cost implications of 340B drugs within the state's medical assistance program.
Sponsors (1)
Last Action
Referred to Assignments (on 02/06/2026)
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