Welch, House Democrats Pass Bill Cracking Down on Big Pharma Middlemen, Lowering Prescription Prices

SPRINGFIELD, Ill. – Speaker Emanuel ‘Chris’ Welch and House Democrats are continuing their efforts to expand access to affordable healthcare by advancing new reforms to crack down on the big pharma middlemen who drive up the cost of prescription drugs and hold them accountable for putting executive bonuses ahead of patient care. 

“The rising cost of prescription drugs and medical care are some of the biggest factors driving the cost of living higher and higher,” Welch said. “We know that the lifechanging innovations of our modern healthcare system are only truly impactful when they are accessible and affordable to all people. So we know we need reforms like this to cut red tape, curb shortsighted corporate profit-seeking, and truly put patients first.”  

Welch and House Democrats passed the Prescription Drug Affordability Act (House Bill 1697), creating new guidelines on pharmacy benefit managers (PBMs) to reduce drug prices and curb deceptive practices. PBMs are private corporations that negotiate the availability and price that insurance companies and pharmacies pay drug manufacturers for their products. Due to decades of industry consolidation, three PBMs control nearly 80% of the market, leaving them with huge leverage over drug prices. 

Under this measure, PMBs would be prohibited from “steering,” or manipulating patients to only use affiliated pharmacies, and barred from unreasonably classifying certain prescriptions as more expensive “specialty drugs.” 

This measure also takes aim at the massive executive bonuses and corporate overhead that drive up the cost of medications. House Bill 1697 requires PMBs to annually disclose their total spending on bonuses, administration, and other expenses not related to direct medical care.