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Illinois public officials seek greater oversight of prescription drug 'middlemen'

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Illinois public officials seek greater oversight of prescription drug 'middlemen'


SPRINGFIELD, Ill. — As state lawmakers hold hearings targeting the role of pharmacy benefit managers – an influential arm in how the health insurance industry prices prescription drugs – multiple state agencies are considering how to better regulate the industry.

Often referred to as pharmaceutical “middlemen,” PBMs act as third-party intermediaries who negotiate the availability and price insurance companies or pharmacies pay for prescription drugs from pharmaceutical manufacturers. In determining the drugs covered by a given employer insurance plan, the companies can ultimately dictate what drugs are available to patients and pharmacies alike.

PBMs have received growing scrutiny on both a state and national level for the effect many claim they have on driving up drug prices. Local pharmacy owners testified at recent committee hearings that they are being squeezed by PBMs through the price of acquiring drugs wholesale and dispensing them, often at no profit or even at a loss. Over 40 percent of local pharmacies in Illinois – about 300 locations – have closed since 2013, according to the National Community Pharmacists Association.

“On almost every brand name medication that you fill, you lose money,” Michelle Dyer, pharmacist and owner of Michelle’s Pharmacy in Macoupin County, told the House Health Care Availability and Access Committee this week.

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It was one of multiple recent hearings on the companies, and it followed last week’s review of a scathing audit of the state’s oversight of the industry. In part, the audit from 2023 found state regulators had scant documentation required for effective oversight of PBMs.

Joe Butcher, of the auditor general’s office, told lawmakers on the Legislative Audit Commission that the Illinois Department of Healthcare and Family Services failed to collect documents relevant to state Medicaid spending, which it is responsible for overseeing. Without necessary documents, Butcher said, the state cannot adequately exercise oversight authority.

“HFS was not engaging in monitoring practices of PBMs as mandated by the Illinois Public Aid Code, which establishes several provisions for monitoring PBMs,” he said.

HFS Director Elizabeth Whitehorn, who was appointed in January, said she was not sure how HFS failed to obtain documentation from entities under its watch.

“I don’t want to speak for what the department did or did not do before I was here,” she said. “I don’t know if the department ever asked for the contracts and they were not provided, or if the department simply didn’t ask for them.”

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Whitehorn told lawmakers the department will soon file a new rule to help the department supervise PBMs, in part by requiring PBMs to divulge more information about their potential conflicts of interest. That will kick off a rulemaking process through which the department plans to submit the rule by June to the Joint Committee on Administrative Rules.

Corporate consolidation

Many PBMs, part of an industry that launched in the 1960s as prescription drugs became a consistent part of health plans, started as independent companies but were purchased by drug manufacturers in the 1990s.

Three publicly traded PBMs – CVS Caremark, Express Scripts and Optum RX – control about 80 percent of the U.S. PBM market, and the top six companies have over 95 percent, according to the Journal of the American Medical Association.

The state’s newly appointed insurance director, meanwhile, indicated her willingness to help regulate the industry, citing the consolidation of ownership as detrimental to patients. Ann Gillespie, a former CVS Caremark employee, was elevated to insurance director from the Illinois Senate by Gov. JB Pritzker last month.

“Corporate consolidation has exacerbated the situation, turning the existence of independent pharmacies from just a competitive market issue into a health care access issue,” Gillespie said at the House committee hearing Tuesday.

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Gillespie also said the Department of Insurance is willing to “design and implement additional regulatory tools” with the General Assembly.

“PBMs have continually sought to evade scrutiny and accountability,” she said. “As legislators and regulators across the country have sought greater transparency, PBMs have also challenged state regulatory authority in the courts, creating additional barriers to stall regulatory efforts.”

Attendees at recent committee hearings referenced House Bill 4548, which aims to change Illinois’ insurance law so state government can better regulate PBMs. Proposed changes include having PBMs disclose the net cost of drugs covered by a health benefit plan, and restricting PBMs from ushering patients toward using pharmacies owned by associated companies.

Last year’s audit recommended consistent monitoring of PBMs, including requiring an annual report, which is outlined in HB 4548. The bill also outlines measures requiring PBMs to pay pharmacies a dispensing fee and reimburse them at a rate equal to the national average drug acquisition cost dictated by Medicaid.

The bill remains in a procedural committee in the House, making it unlikely to pass by the General Assembly’s end-of-May adjournment.

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The Federal Trade Commission is also in the midst of an ongoing antitrust probe of six of the largest PBMs, five of which are owned by insurance companies themselves. Last year, the FTC withdrew prior statements of support for PBMs. And at a White House event in March, FTC chair Lina Khan said companies are not cooperating with the probe.

CVS Health, which has the largest share of the market, disputed the claim, according to news reports; but Rep. Natalie Manley, a Joliet Democrat who chairs the Illinois House committee that’s probing PBMs, criticized the lack of attendance by PBM executives at her committee’s first hearing on the industry last month.

“If there were 10 people here from the PBMs, I would put them right here and give you some backup,” Manley told a lobbyist from the Pharmaceutical Care Management Association, a national trade association representing a vast majority of PBMs.

“We need these questions answered, I’m not sure why they’re not here,” she added. “This was their opportunity to answer some of the accusations that are being lobbed at them.”

Only one PBM lobbyist and the president of Vivid Clear RX, a PBM subsidiary of Hy-Vee supermarkets, joined last month’s House committee hearing. One employee from the Blue Cross Blue Shield-owned PBM Prime Therapeutics also eventually testified.

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The number of PBMs represented increased at this week’s hearing as another Prime Therapeutics representative and general counsel from Express Scripts joined a trade association lobbyist.

Jennifer Halsey, professor and director of ambulatory pharmacy services at the University of Illinois Chicago, said at last month’s hearing insurance companies are making billions while people in need are unsure if they can afford their prescriptions.

“We continue to see that insurance companies and PBMs make billions of dollars in profit alone every single year, and those profits increase year after year,” Halsey said. “I understand they have shareholders, but how do we make sure that patients have access to care? If we don’t get to the point where the pharmacies are being reimbursed at a reasonable rate, there will no longer be pharmacies for patients to go to.”

Manley said she expects “many more months” of hearings regarding PBMs.

Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of newspapers, radio and TV stations statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.

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Illinois

Illinois Democrats face backlash after blaming Trump in Chicago cross-burning case | Fox News Video

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Illinois Democrats face backlash after blaming Trump in Chicago cross-burning case | Fox News Video


Illinois Democratic leaders Governor JB Pritzker and Chicago Mayor Brandon Johnson are slammed for weaponizing a Chicago cross burning incident by blaming former President Trump. Despite the suspect, Murlin Lue, admitting his motive was to protest Trump, not racism, Pritzker and Johnson doubled down. Critics, including Illinois GOP State Rep. Chris Miller, accuse them of playing politics and fostering division rather than seeking truth.



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Illinois Lt. Gov. candidates focus on affordability in pitch to Rockford voters

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Illinois Lt. Gov. candidates focus on affordability in pitch to Rockford voters


ROCKFORD, Ill. (WIFR) – November ballots will feature a repeat of top billing in the race for governor. Illinoisans can once again choose between Governor JB Pritzker or Darren Bailey to lead the Land of Lincoln.

But beside their spots, new names will appear for voters.

The Democratic and Republican candidates for governor picked new running mates for their rematch. With Lieutenant Governor Julianna Stratton running for U.S. Senate, Pritzker picked Christian Mitchell to join his ticket. On the Republican side, Aaron Del Mar joins Bailey, who previously ran with Stephanie Trussell in 2022.

Mitchell and Del Mar spoke Thursday with WIFR on what inspires them to run, their campaign priorities and ideas to improve the Rockford region.

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Backgrounds

Starting with the Democratic ticket, Mitchell joins the race as a former state representative from Chicago as well as a deputy governor with the Pritzker administration.

“Before anything else, I’m Debbie’s son, and I’m James’s grandson,” Mitchell introduced. “They’re the ones who really instilled in me the value of hard work and made sure that I was going to have a very bright future.”

Mitchell sees the role of lieutenant governor as a partner to the state’s executive.

“I’m really lucky to be running with somebody who I respect, and who I think is the best governor in the nation… Governor JB Pritzker,” he said.. “My first thing is going to be supporting his agenda, which right now is all about lowering costs and raising wages.”

On the Republican side, Del Mar hails from suburban Chicago and considers his first priority to be raising his family.

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“I wanted nothing to do with politics, did not want to be involved — wanted just to raise my kids and work my job,“ said Del Mar. He described his start in public service as something he ”kind of got pulled into.”

The Republican worked his way from a city council member in Palatine, at 29-years-old, to co-chair of the Illinois GOP. Although he says he “wanted nothing to do with being on” Bailey’s campaign, Del Mar sees strength in unity — offering a Chicago area perspective alongside Bailey’s southern Illinois roots.

“How about everybody in the state of Illinois, regardless of where you come from, has a seat at the table. If you’re from a southeast farming community, or you’re from the city of Chicago, where I grew up, everybody has a stake in the game.”

Priorities

Mitchell points to economic development as his focus for the gubernatorial campaign.

“I see vacancies on State Street in Chicago. I see vacancies on Main Street in Belleville and Alton and in Carbondale,” he recounted. “I want to make sure that we’ve got the kind of amenities and economic development, that kind of affordability, that allow us to make sure that folks want to stay in the towns that they’re born in if they want to.”

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The Democratic candidate also eyes long-term planning for the state, including an “Illinois 2050 Plan.”

“How do we have the kind of educational undergirding that means that no matter where you’re from, you have a chance to have one of those jobs, whether it’s in new agriculture technology and new farming techniques or biotech, quantum.”

When asked how to achieve these priorities, Mitchell turned to investing in public education, retaining residents with better wages and improving health care.

“Making sure that we are able to protect our health care system, so that folks aren’t going broke when they get sick, that’s another big way that we can make an impact.”

Del Mar outlined a cost-of-living focus as central to his campaign.

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“You wanna succeed, you do the basics really well, and the basics are affordability,” he contended.

The Republican repeatedly highlighted the state’s property taxes — reportedly the highest in the nation — as an issue to tackle. He suggested redirecting Illinois’s budget as one measure to ease the burden on homeowners.

“Number one is fully funding the state’s portion of local taxes, because that will offer people property tax relief.” Del Mar clarified this wouldn’t mean redirecting funds for public education.

“We’re looking at how we fund schools, how we make sure to empower teachers to have the best educational outcomes that we can have here in Illinois, regardless of what your zip code is, regardless of what your parents do for a living or how much money they make,” added Del Mar.

Reflecting on Rockford

Each candidate provided their vision for boosting the Rockford region.

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For Mitchell, improvements continue with infrastructure funding, building on the state’s roughly $500 million investment in the area.

“The things that we have already worked on, through the capital plan that I helped lead as deputy governor, that the governor signed and is implementing, are already having benefits that the people of Rockford can see.”

The Democrat also pointed to the Chicago Rockford International Airport as an opportunity.

“Investing in that regional airport where we’ve already helped with a matching grant to get additional funds, that helps build out the economy,” said Mitchell. “There’s so much that’s happening there that it is really good for the economy and bringing more people back to Rockford.”

Del Mar shared his local priority as supporting unionization in the area.

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“Union families deserve to be able to have a livable wage, and that’s something that’s important to Darren and I,” said Del Mar. He mentioned pensions were another item that a Republican executive wouldn’t touch for the public and private sector unions.

“I know that area up there has strong union backbone,” described Del Mar. “We want to make sure they know that they’re not going to have a bigger supporter in the governor’s mansion than Darren and I.”

Election Day

When asked for thoughts on their opponent, Mitchell criticized the Bailey campaign as a “repacking” of his 2022 run.

“The only record that they have to run on is extremism,” he exclaimed.

The Republican candidate also reflected on records, pointing to Pritzker’s years in office.

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“Why are we underfunding education? Why are property taxes at all-time high? Why are businesses leaving?” asked Del Mar.

Voters can decide on who will lead Illinois November 3. Early voting starts September 24, with applications for voting by mail opening August 5.

Extended Interviews

Copyright 2026 WIFR. All rights reserved.



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Illinois man charged after Rochester sting catches phone scammer with $50K in cash

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Illinois man charged after Rochester sting catches phone scammer with K in cash


A man from Illinois is facing felony charges after police say he took part in a scheme that convinced a Rochester resident to hand over thousands of dollars in cash and nearly fell for a gold bar handoff.

Rochester phone scam

What we know:

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According to a criminal complaint filed in Olmsted County District Court, police say the victim was contacted by phone and told he was under investigation for a crime. The caller convinced him to deliver $30,000 in cash to a man he met in person on June 17, 2026. 

The victim was then pressured to arrange a second delivery — this time, 10 one-ounce gold bars — on June 23, 2026. Detectives worked with the victim to set up a controlled delivery using fake gold bars and a GPS tracker.

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Charges state that the plan was for the victim to meet whoever arrived to pick up the package, while officers watched nearby. Surveillance officers saw a white SUV with Illinois plates circling the parking lot at 2711 Commerce Drive NW in Rochester.

The complaint states a man, later identified as Kiranbhai Kanubhai Vasava, got out, met the victim, gave the password and took the package. Officers followed the car as it left the scene. Detectives stop suspects and recover cash 

Why you should care:

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Police stopped the SUV near Eyota and searched it, finding $50,000 in cash, several cell phones, bank checks with Vasava’s name, and packaging materials similar to those used for the fake gold bars. The package with the GPS tracker and fake gold was missing, but officers later found the GPS device torn apart on the side of the highway. 

The second man in the car, Hemendrasinh Pravinsinh Dabhi, told police he got a call from India about a package but claimed he knew nothing about it, saying, “he just drives.” Vasava also denied knowing what was happening. 

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Kiranbhai Vasava linked to Wisconsin case

The backstory:

The complaint states detectives linked Vasava to another similar case in Stevens Point, Wisconsin, where a bank customer was convinced to hand over $50,000 in cash to a driver in a white Honda SUV. Video from that incident showed Vasava receiving the package.

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Police say this type of swindle involves convincing victims they are under investigation and must pay money or hand over valuables to clear their name. Detectives say the investigation involved coordination between local police and law enforcement in Wisconsin.

The Source: Criminal charges filed in Olmsted County Court.

Crime and Public SafetyRochesterOlmsted County
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