Illinois is one of the latest states to enact legislation aimed at regulating pharmacy benefit managers (PBMs) with the Prescription Drug Affordability Act (HB 1697) signed into law by Governor Pritzker on July 1, 2025. This Alert summarizes HB 1697, with a focus on those provisions most likely to affect employer-sponsored health plans. We also address ERISA preemption in the aftermath of the June 2025 decision by the U.S. Supreme Court (Supreme Court) not to review the 2023 U.S. Court of Appeals for the Tenth Circuit (10th Circuit) ruling in Pharmaceutical Care Management Association v. Mulready[1] (Mulready).
This Alert is relevant for any employers sponsoring group health coverage providing prescription drug benefits administered by a PBM subject to Illinois law.
[1] Pharmaceutical Care Management Association v. Mulready, 78 F.4th 1183 (10th Cir. 2023).
