340B State Legislation: Illinois
Overview
The Illinois General Assembly is considering HB 2371, which would expand the 340B program at a time when employers are already struggling with rising healthcare costs.
Under the federal program, participating hospitals can buy prescription drugs at steep discounts and still charge employer-sponsored health plans full commercial prices. They keep the spread, yet there is little accountability to show those savings are being passed on to patients or used to meaningfully support vulnerable communities.
That structure can drive up costs for employers by rewarding higher markups, accelerating consolidation, and favoring higher-cost drugs over lower-cost alternatives like biosimilars.
Recent analysis estimates the program already costs employers in the state $224 million annually, and legislation expanding the program would add another $89 million a year.
The National Alliance urges Illinois lawmakers to listen to employers about how the 340B program impacts business costs and working families across the state before making any changes to the program.
340B Employer Resources
Explore these additional resources for more information about the impact of 340B and the current lack of transparency around the program in Illinois.
New Tools Tell the Story: 340B Is Raising Costs for Employers and Working Families
In this blog, National Alliance President & CEO Shawn Gremminger explores the growing scale of the 340B program and its increasing cost burden on employers and working families. Pointing to new tools that shed light on the program, he highlights ongoing gaps in transparency and argues that policymakers should demand clearer evidence of impact before pursuing further expansion.
340B Bill Would Raise Healthcare Costs for Illinois Businesses
Learn more about the impact of proposed 340B legislation on employers, benefits professionals, and working families in Illinois.
A 'drug discount' that somehow drives up costs
In Crain’s Chicago Business, Cheryl Larson, president and CEO of the Midwest Business Group on Health, warns that a proposed Illinois bill tied to the 340B drug discount program could drive up health care costs for employers while failing to improve access to affordable medications for employees and their families.
