If House Bill 2371, as amended, becomes law, the Department of Insurance must study Illinois providers' use of 340B discounts and report findings to lawmakers.
If House Bill 2371, as amended, becomes law, the Department of Insurance must study how Illinois providers and drugmakers use 340B discounts, including effects on state health programs.
Providers and drugmakers must answer the department's study requests. Missing information may bring daily fines, with lower fines for certain hospitals and 340B grantees.
The department must report combined study findings to lawmakers and the Governor without naming individual providers or drugmakers.
If House Bill 2371 becomes law, the Attorney General may take Section 15 violations to court; a judge could order damages, penalties, or other relief.
The Department of Insurance must study how Illinois 340B providers and drug manufacturers take part in the federal discount program. The study covers Illinois 340B covered entities and pharmaceutical manufacturers doing business in Illinois. The study must examine effects on state health programs, including Medicaid and the State Employees Group Insurance Program. The Act takes effect only if House Bill 2371, as amended by Senate Amendment No. 2, becomes law; its effective date is the later of that bill's effective date or this Act's becoming law. The Department must begin the study as soon as practical after this Act takes effect.
340B providers and drug manufacturers must provide information the Department of Insurance requests for its study. The duty applies to all Illinois 340B covered entities and pharmaceutical manufacturers doing business in Illinois. A fine may apply if all requested information is not submitted within 30 calendar days after the Department's deadline. The fine is $500 per day, or $100 per day for hospitals with fewer than 100 licensed beds, Critical Access Hospitals, Safety-Net Hospitals, and 340B grantees. Fine money goes to a state fund for health care access, sustainability, and support for the 340B program. The Department sets the response deadline; a fine may apply when information remains missing 30 calendar days after that deadline.
The Department of Insurance must send lawmakers and the Governor a report of the study's findings. The report covers findings about 340B covered entities and pharmaceutical manufacturers. The report must combine findings across providers and drugmakers and may not identify any one of them. The Department must note information requests that were not answered and address whether providers should report yearly or every two years. The report is due by July 1, 2028. The Act is repealed on July 1, 2032.
If House Bill 2371 becomes law, the Attorney General may bring a court case over violations of that law's Section 15. This applies only if House Bill 2371 becomes law and concerns violations of its Section 15. The Attorney General must have reasonable cause to believe a violation has occurred or is occurring. A court finding a violation may allow orders to stop the conduct, money damages, a civil penalty of up to $1,000 per violation, or other relief.
No hearings or votes scheduled.