Bill Text: IL HB2371 | 2025-2026 | 104th General Assembly | Enrolled

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Bill Title: Creates the Patient Access to Pharmacy Protection Act. Provides that no person, including a pharmaceutical manufacturer, may deny, restrict, prohibit, condition, or otherwise interfere with, either directly or indirectly, the acquisition of a 340B drug by, or delivery of a 340B drug to, a 340B covered entity or a 340B contract pharmacy authorized to receive 340B drugs on behalf of the 340B covered entity unless the receipt is prohibited by federal law; impose any restriction on the ability of a 340B covered entity to contract with or designate a 340B contract pharmacy; or require or compel a 340B covered entity or 340B contract pharmacy to perform the specified actions. Provides that each individual transaction of 340B drugs that is subject to a prohibited act, as specified, shall constitute a separate violation of the Act. Sets forth provisions concerning reporting requirements for a 340B covered entity and the Department of Healthcare and Family Services; 340B prescription drug applicability; preventing duplication of 340B discounts; enforcement of the Act by the Attorney General; penalties; and preemption. Effective immediately.

Sponsorship: Moderate Partisan Bill (Democrat 28-4)

Status: (Passed) 2026-08-07 - Public Act . . . . . . . . . 104-0758 [HB2371 Detail]

Download: Illinois-2025-HB2371-Enrolled.html

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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Patient Access to Pharmacy Protection Act.
Section 5. Findings. The General Assembly finds that:
(1) It is within the traditional authority of the State to
regulate the acquisition and delivery of drugs to pharmacies
and providers.
(2) The federal 340B statute is silent on distribution of
340B-acquired drugs to 340B covered entities and their
contract pharmacy partners.
(3) The State's compelling interest in preserving and
improving access to health care services requires it to ensure
that 340B covered entities continue to be allowed to contract
with pharmacies to receive 340B drugs and dispense them to the
patients of 340B covered entities in accordance with federal
law.
(4) Addressing accessibility of these life-saving
medications is a matter of health, safety, and welfare for the
people of the State of Illinois.
Section 10. Definitions. As used in this Act:

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"340B contract pharmacy" means any pharmacy that is under
contract with a 340B covered entity to dispense 340B drugs on
behalf of the 340B covered entity and is either (i) located in
Illinois and qualifies as a pharmacy under Section 3 of the
Pharmacy Practice Act; or (ii) is located in a state,
commonwealth, or territory of the United States, other than
Illinois, and dispenses 340B drugs on behalf of the 340B
covered entity.
"340B covered entity" means an entity in Illinois that
qualifies as a covered entity under Section 340B of the
federal Public Health Service Act, 42 U.S.C. 256b(a)(4).
"340B drug" means a drug that has been subject to any offer
for reduced prices by a manufacturer pursuant to 42 U.S.C.
256b and is purchased by a 340B covered entity.
"340B drug discount program" means the program established
under Section 340B of the federal Public Health Service Act,
42 U.S.C. 256b.
"340B grantee" means an entity in Illinois that qualifies
as a covered entity under subparagraphs (A)�(K) of paragraph
(4) of subsection (a) of Section 340B of the federal Public
Health Service Act, 42 U.S.C. 256b(a)(4)(A)-(K).
"Critical Access Hospital" has the meaning given to that
term in paragraph (4) of subsection (b) of Section 5-5e of the
Illinois Public Aid Code.
"Hospital" means a hospital licensed under the Hospital
Licensing Act or University of Illinois Hospital Act.

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"Manufacturer" or "Pharmaceutical Manufacturer" has the
meaning given to the term "manufacturer" in the Wholesale Drug
Distribution Licensing Act.
"Person" includes a natural person, partnership,
association, corporation, or any other legal business entity.
"Person" does not include any federal or State government
entity or body.
"Safety-Net Hospital" has the meaning given to that term
in Section 5-5e.1 of the Illinois Public Aid Code.
Section 15. Protection of patient access to pharmacy.
(a) No person, including a pharmaceutical manufacturer,
may deny, restrict, prohibit, condition, or otherwise
interfere with, either directly or indirectly, the acquisition
of a 340B drug by, or delivery of a 340B drug to, a 340B
covered entity or a 340B contract pharmacy authorized to
receive 340B drugs on behalf of the 340B covered entity unless
the receipt is prohibited by federal law.
(b) No person, including a pharmaceutical manufacturer,
may impose any restriction on the ability of a 340B covered
entity to contract with or designate a 340B contract pharmacy,
including restrictions relating to the number, location,
ownership, or type of 340B contract pharmacy.
(c) No person, including a pharmaceutical manufacturer,
may require or compel a 340B covered entity or 340B contract
pharmacy to:

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(1) submit or otherwise provide ingredient cost or
pricing data pertinent to 340B drugs unless required by
State or federal law;
(2) institute requirements in any way relating to how
a 340B covered entity manages its inventory of 340B drugs
that are not required by a State or federal agency,
including requirements relating to the frequency or scope
of audits of inventory management systems of a 340B
covered entity or a 340B contract pharmacy; or
(3) submit data or information that is not required by
a State or federal law as a condition for a 340B covered
entity, its 340B contract pharmacy, or a location
otherwise authorized by a 340B covered entity to receive
340B drugs.
(d) Each individual transaction, as defined in 21 U.S.C.
360eee-24, of 340B drugs that is subject to a prohibited act in
subsections (a) and (b) shall constitute a separate violation
of this Act.
Section 20. Reporting. On or before August 1, 2026 and
each August 1 thereafter, a 340B covered entity shall submit a
report to the General Assembly pursuant to this Section. For
the purposes of this Section, the following covered entities
are exempt until January 1, 2029 and will report on or before
August 1, 2029 and each August 1 thereafter: hospitals with
fewer than 100 licensed beds, Critical Access Hospitals,

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Safety-Net Hospitals, and 340B grantees. The report must
include all of the following for the 340B covered entity's
340B program:
(1) the name of the 340B covered entity submitting the
report;
(2) a copy of the 340B covered entity's annual 340B
program recertification;
(3) whether a community benefits plan report is
required under Section 20 of the Community Benefits Act
and, if so, a copy of the 340B covered entity's community
benefits plan report, including a description of the
amount of charity care provided by the 340B covered
entity;
(4) the aggregate acquisition cost for prescription
drugs obtained under the 340B program and dispensed or
administered to patients;
(5) the aggregate payment amount received for all
drugs obtained under the 340B program and dispensed or
administered to patients;
(6) the number of claims for prescription drugs
received under the 340B program;
(7) the percentage of the 340B covered entity's claims
that were for prescription drugs obtained under the 340B
program;
(8) a description of any adverse 340B program audits
within the preceding 12 months; and

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(9) a description of the impact of the 340B program on
the patients and the community served by the 340B covered
entity.
Section 25. Medicaid study.
(a) By January 1, 2028, the Department of Healthcare and
Family Services shall report to the General Assembly on the
following for the total aggregated covered outpatient drug
units dispensed or administered in this State for the prior
calendar year in connection with the medical assistance
program under the Illinois Public Aid Code, categorized by (i)
fee-for-service and (ii) each managed care plan:
(1) the number of dispensed or administered covered
outpatient drug units;
(2) the number of dispensed or administered covered
outpatient drug units that were subject to a rebate under
42 U.S.C. 1396r-8; and
(3) a reasonable estimate of net costs or savings to
the State's medical assistance program due to 340B covered
entity purchases of covered outpatient drug units at 340B
pricing.
(b) To the extent the Department of Healthcare and Family
Services lacks information to provide a data element required
under subsection (a), it shall provide a reasonable estimate
based on all available information and an explanation of the
information that it lacks.

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Section 30. 340B prescription drug applicability. Each
340B covered entity shall dispense or administer 340B drugs
only when in connection with an outpatient health care service
received by the patient within the last 18 months.
Section 35. Preventing duplication of 340B discounts. Each
340B covered entity shall develop and maintain a policy that
ensures it is not placing an order for a 340B drug to replenish
a prior pharmacy dispense if any other 340B covered entity
will place an order for a 340B drug to replenish the same prior
pharmacy dispense. The policy shall also include a process to
reimburse a manufacturer for any duplicate 340B discount the
covered entity receives. The policy shall be filed annually
with the General Assembly.
Section 40. Enforcement.
(a) The Attorney General is authorized to enforce this Act
under its general authority under the Attorney General Act.
(b) Upon finding a violation of Section 15 of this Act, a
court may order:
(1) temporary, preliminary, or permanent injunctive
relief for any act, policy, or practice that violates this
Act;
(2) money damages to be paid to the 340B covered
entity as a result of the violation of this Act;

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(3) the assessment of a civil penalty of up to $1,000
for each violation of Section 15; or
(4) any other relief.
Section 45. Preemption.
(a) Nothing in this Act shall be construed or applied to be
less restrictive than federal law for a person regulated by
this Act.
(b) Nothing in this Act shall be construed or applied in a
manner that would conflict with:
(1) applicable federal law; or
(2) other laws of this State if the State law is
compatible with applicable federal law.
(c) Limited distribution of a drug required under 21
U.S.C. 355-1 may not to be construed as a violation of this
Act.
Section 97. Severability. If any provision of this Act or
its application to any person or circumstance is held invalid,
the invalidity of that provision or application does not
affect other provisions or applications of this Act that can
be given effect without the invalid provision or application.
Each paragraph defining "340B contract pharmacy" in Section 10
is severable.
Section 99. Effective date. This Act takes effect upon
becoming law.