New 340B Laws Protect Affordable Medications, Health Care for Chicago Patients

CHICAGO -- Thousands of Chicago patients who depend on community health centers for affordable medications and healthcare services are expected to benefit from two new Illinois laws protecting the federal 340B Drug Pricing Program.

Gov. JB Pritzker signed House Bills 2371 and 4327 on Aug. 7, drawing praise from the Illinois Primary Health Care Association and Chicago-based Esperanza Health Centers. Both organizations said the legislation represents a major victory after years of efforts to preserve 340B and the healthcare services its savings support.

“This is a very welcome day for Esperanza and for all community health centers in Illinois,” said Dr. Nicole Kazee, president and CEO of Esperanza Health Centers. “Friday’s signing represents a much-needed and timely victory for the safety-net and the patients we serve.”

The federal 340B program, created by Congress in 1992, requires pharmaceutical manufacturers to provide discounts on medications purchased by eligible health centers and other covered healthcare providers. Community health centers can use resulting savings to support staffing, expand services and improve access to care.

Esperanza says the program is particularly important on Chicago’s Southwest Side, where the Federally Qualified Health Center serves more than 57,000 lower-income patients annually through seven primary care sites, a behavioral health clinic and a Program of All-Inclusive Care for the Elderly.

Many of those patients could not afford their medications without 340B, Kazee said.

HB 2371, the Illinois Patient Access to Pharmacy Protection Act, addresses restrictions pharmaceutical manufacturers began placing on contract pharmacies in 2020. The new law protects pharmacy arrangements that community health centers use to provide discounted medications throughout the communities they serve.

IPHCA President and CEO Ollie Idowu said those protections have direct consequences for patients because health centers can continue using 340B savings for expanded services, workforce development, chronic disease management and behavioral healthcare.

“Governor Pritzker has once again shown that he understands what community health centers mean to the people of Illinois,” Idowu said. “By signing these bills, the Governor is standing with the patients who have the fewest options and the providers who show up for them every single day.”

The second measure, HB 4327, directs the Illinois Department of Insurance to study 340B and report on its operation and impact in Illinois. IPHCA said the measure provides greater transparency without weakening the program’s ability to serve patients.

Both organizations credited lawmakers who helped advance the legislation. Rep. Anna Moeller and Sen. David Koehler championed HB 2371, while Rep. Camille Lilly and Koehler led HB 4327.

Esperanza also credited IPHCA with spearheading what Kazee called a “hard-fought effort” to secure the protections.

The stakes could become even greater in coming years. Kazee said that as Illinois prepares for Medicaid cuts beginning in 2027, the new laws send “a clear message of leadership and support for health centers and the safety net.”

IPHCA represents 55 community health centers serving more than 1.5 million patients annually across Illinois, regardless of their ability to pay.