A new law now in effect in Illinois prevents drug manufacturers from continuing to skyrocket their generic drug prices without accountability. Local advocates and pharmacists share how this can positively impact consumers.
ROCKFORD, Ill. — The new Illinois Drug Pricing Fairness Act prevents drug manufacturers from price gouging generic drugs. Put into effect on January 1st, 2024, the law specifically sets pricing and percentage thresholds at which drug manufacturers cannot increase their prices over a certain period of time.
"Prescription drugs don’t work if people can’t afford them, said Anusha Thotakura, the Deputy Director for Citizen Action Illinois.
"These are life saving or life changing medications."
State Senator Steve Stadelman, an avid supporter and sponsor for House Bill 3957, said, " People shouldn’t have to burn a hole in their wallets to receive the medication they need. This new law will ensure every Illinoisan has access to essential medication at a fair price…"
Some examples of generic drugs that will now be protected include epinephrin, albuterol, and erythromycin.
"If a 30 day supply exceeds $20, and would result in an increase of either 30% or more within the preceding year, or 50%, or more within the preceding three years, or 75% or more within the preceding five years, then that would be a violation of the law," said Thotakura
One local pharmacist and owner of Downtown Discount Drugs in Rockford, Raj Patel, knows the flucuation of generic medicine prices all too well. Owning his business since 1986, he has to be the middle man between patients, doctors, and insurance companies.
"Insulin prices were restricted, which was a really good thing, because a lot of people couldn’t afford insulin. Now they can… for example, Lantus was $435 and is now $92," said Patel.
"When customers come to the counter, they just flip out on us after seeing prices… sometimes we can’t control it."
When drugs are originally manufactured, they are under patent. This allows manufacturers time to recoup the research and developmental costs that went into the research to release the medicine. After this, multiple drugs have generic versions.
"Even after being off patent and being eligible for generic versions, which have to have the same name, active ingredients, and they have to go through testing processes to show that they’re similar enough to the name brand medication…," said said Thotakura.
"Even if they’re eligible for that, not all eligible drugs have multiple manufacturers, because in some cases, the patient population for that drug is so small that there’s not enough incentive for the companies to produce those drugs."
"Generic medications are supposed to be an affordable alternative to name brand, and affordable alternative to patented drugs," said Thotakura.
Moving forward, institutions like Citizen Action Illinois aim to bring improvements to the law, to also encompass other drugs that are not generic. For more information on the new law in effect, click here.
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January 5, 2024 at 12:32PM
