New Federal Drug Program Could Cost Illinois Employers Millions

A bill pending in the Illinois General Assembly that seeks to expand access to a federal discount drug program could end up costing Illinois employers millions of dollars a year. Capitol News Illinois reports the program, known as 340-B, provides discounted drugs to hospitals and clinics that treat large volumes of Medicaid patients. A memo from the Illinois Department of Central Management Services estimates that passing the bill would raise costs on employer-based health insurance plans in Illinois by 89 million dollars a year. That includes 12-point-4 million dollars in additional costs for the State of Illinois Group Insurance Program. Supporters of the bill say it would benefit community healthcare centers and rural hospitals. The bill passed the Senate during the 2025 legislative session. It is still awaiting final approval in the Illinois House.