NFIB Illinois submitted written testimony to the Illinois House Health Care Availability Committee calling for greater transparency in pharmacy benefit manager (PBM) pricing.

Small and independent pharmacies operate in a heavily regulated marketplace. The regulatory framework has put them at a disadvantage compared to many of their larger competitors.

The letter calls on the committee to “talk to their hometown pharmacists, hear their stories, and take action to address the market imbalance caused by current government regulation.”

The letter to the Illinois House Health Care Availability & Accessibility Committee reads:

To: The Honorable Members of the House Health Care Availability & Accessibility Committee

From: Noah Finley, NFIB Illinois State Director

Date: February 18, 2025

Subject: Pharmacy Benefit Manager Transparency

NFIB supports greater transparency in pharmacy benefit manager (PBM) pricing.

The pharmaceutical marketplace is heavily regulated and complex, especially when it comes to PBMs. This distorted market puts small, hometown pharmacies at a disadvantage against their larger, vertically integrated or mail-order competitors. Under the current regulatory framework, many small pharmacies are forced to sell medicines at less than cost, an unsustainable business model, that could force them out of business.

Small and independently owned businesses, including pharmacies, are the lifeblood of our communities. They invest, hire, and build in small towns and neighborhoods across this state. Small and independently owned pharmacies provide unique services to their communities and deserve a chance to compete against their larger peers. To level the playing field, NFIB members support greater pricing transparency requirements for pharmacy benefit managers. In a recent NFIB-member ballot in Illinois, 79% of respondents supported requiring pharmacy benefit managers to disclose their pricing methods to pharmacies and consumers.

As such, NFIB encourages the House Health Care Availability & Accessibility Committee to consider ways to encourage pharmacy benefit manager pricing transparency. Several proposals have been filed to address the market distortion for pharmaceutical products. NFIB encourages legislators to talk to their hometown pharmacists, hear their stories, and take action to address the market imbalance caused by current government regulation.

Thank you for your support of Illinois’ small-business community.