340B INTEGRITY ACT

Illinois General Assembly - Full Text of SB3878

Select Language

×

The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.

Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.

The English language version is always the official and authoritative version of this website.

NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.

Choose Language

English

Afrikaans

Albanian

Arabic

Armenian

Azerbaijani

Basque

Bengali

Bosnian

Catalan

Croatian

Czech

Danish

Dutch

Esperanto

Estonian

Filipino

Finnish

French

Galician

Georgian

German

Greek

Gujarati

Haitian Creole

Hausa

Hawaiian

Hebrew

Hindi

Hungarian

Icelandic

Indonesian

Interlingua

Interlingue

Inuktitut

Irish

Italian

Japanese

Javanese

Kannada

Khmer

Korean

Latin

Latvian

Lithuanian

Luxembourgish

Macedonian

Malagasy

Malayalam

Maltese

Maori

Marathi

Myanmar

Nepali

Norwegian

Odia

Pashto

Punjabi

Romanian

Russian

Samoan

Sango

Sanskrit

Sardinian

Sindhi

Sinhala

Slovak

Slovenian

Somali

Southern Sotho

Spanish

Sundanese

Swahili

Swedish

Tamil

Telugu

Thai

Tigrinya

Tonga

Turkish

Ukrainian

Urdu

Vietnamese

Welsh

Xhosa

Yiddish

Yoruba

Zulu

Powered by
Translate

Close

Illinois General Assembly

Top Navigation Bar

Translate

Learn

Select General Assembly

Search the 104th General Assembly

Enter search terms for legislation, members, committees, or schedules.

ILGA.GOV

LEGISLATION & LAWS

Bills & Resolutions

Public Acts

Illinois Compiled Statutes

Illinois Constitution

Search Legislation

Glossary

Guide

Reports & Inquiry

Legislative Reports

Special Reports

FTP Site

Legislator Lookup

Capitol Complex Phone Numbers

Rules & Regulations

Illinois Register

Administrative Rules

Senate

Members

Schedules

Committees

Request for Remote Testimony

Journals

Transcripts

Rules

Audio/Video

FOIA Information

Senate Employment Opportunities

Media Guidelines

House

Members

Schedules

Committees

Submit testimony for House Committees

Journals

Transcripts

Rules

Audio/Video

FOIA Information

House Employment Opportunities

Log In

Mobile Top Bar

Search the 104th General Assembly

Enter keywords to search the Illinois General Assembly website.

Full Text of SB3878

Home

Legislation

Full Text

SB3878 - 104th General Assembly

Bill Status

Full Text

Votes

Witness Slips

Select Menu

Bill Status

Full Text

Votes

Witness Slips

Printer Friendly Version

Introduced

Printer Friendly Version

Introduced

Open PDF

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3878

Introduced 2/6/2026, by Sen. Julie A. Morrison

SYNOPSIS AS INTRODUCED:

New Act

Creates the 340B Integrity Act. Defines terms. Provides that,
beginning January 1, 2027, 340B covered entities shall not bill any
medical assistance fee-for-service or medical assistance managed care
programs under the Illinois Public Aid Code for 340B drugs. Provides that,
beginning July 1, 2026 a 340B covered entity shall use 80% of 340B profits
from the prior year to decrease at the point of sale, including at the 340B
contract pharmacy, the out-of-pocket costs paid for 340B drugs that are
dispensed or administered to low-income patients of the 340B covered
entity. Provides that, on or before September 1, 2026, and on or before
September 1 of each year thereafter, each 340B covered entity shall
annually report to the Department of Insurance, with respect to the 340B
covered entity and separately for each offsite outpatient facility
associated with the 340B covered entity, the specified information about
the prior year. Provides that, on or before December 31, 2026, the
Department of Central Management Services shall submit a report to the
General Assembly on any impact to the State employee health plan arising
from 340B covered entity purchases, 340B contract pharmacy arrangements,
and general practices related to 340B drugs, regardless of whether the
340B drugs were self-administered or provider-administered. Provides that
the report shall include, but not be limited to, an analysis of foregone
rebates, the impact on premiums, and the impact to State employee
out-of-pocket costs. Provides that, on or before December 31, 2026, the
Department of Healthcare and Family Services shall report to the General
Assembly on certain items for total aggregated covered outpatient drug
units dispensed or administered in the State for the prior calendar year in
connection with the medical assistance program under the Illinois Public
Aid Code, broken out by fee-for-service and by each managed care plan.
Makes other changes. Effective immediately.
LRB104 20391 BAB 33851 b

A BILL FOR

SB3878
LRB104 20391 BAB 33851 b
1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
340B
5
Integrity Act.

6

Section 5.
Definitions.
In this Act:
7

"340B contract pharmacy" means a pharmacy with which a
8
340B covered entity has contracted to dispense 340B drugs on
9
behalf of the 340B covered entity to patients of the 340B
10
covered entity, regardless of whether the 340B drugs are
11
distributed in person, via mail, or by other means.
12

"340B covered entity" has the meaning given to that term
13
in 42 U.S.C. 256b(a)(4).
14

"340B drug" means a covered outpatient drug, as defined in
15
42 U.S.C. 1396r-8(k)(2), that has been subject to any offer
16
for reduced prices by a manufacturer pursuant to 42 U.S.C.
17
256b(a)(1) and is purchased by a 340B covered entity.
18

"340B drug discount program" means the federal drug
19
pricing program described in 42 U.S.C. 256b.
20

"340B profits" means the difference between the aggregated
21
payments received from insurers, payers, or self-paying
22
patients for all 340B drugs and the aggregated acquisition
23
cost paid for all 340B drugs.

SB3878
- 2 -
LRB104 20391 BAB 33851 b
1

"Charity care" has the meaning given to that term in line
2
23 of worksheet S-10 to the Medicare cost report or in any
3
successor form.
4

"Covered outpatient drug" means a covered outpatient drug,
5
as defined in 42 U.S.C. 1396r-8(k)(2).
6

"Low-income patient" means a patient of a 340B covered
7
entity with a family income below 200% of the poverty
8
guidelines updated periodically in the Federal Register by the
9
U.S. Department of Health and Human Services under the
10
authority of 42 U.S.C. 9902(2).

11

Section 10.
Medical assistance carveout.
Beginning January
12
1, 2027, 340B covered entities shall not bill any medical
13
assistance fee-for-service or medical assistance managed care
14
programs under the Illinois Public Aid Code for 340B drugs,
15
including, but not limited to, billing for any 340B drugs
16
dispensed at a 340B contract pharmacy.

17

Section 15.
Use of 340B profits.
18

(a) Beginning July 1, 2026, a 340B covered entity shall
19
use 80% of 340B profits from the prior year to decrease at the
20
point of sale, including at the 340B contract pharmacy, the
21
out-of-pocket costs paid for 340B drugs that are dispensed or
22
administered to low-income patients of the 340B covered
23
entity.
24

(b) A 340B covered entity shall use any remaining 340B

SB3878
- 3 -
LRB104 20391 BAB 33851 b
1
profits, after spending 340B profits in accordance with
2
subsection (a), on free and discounted care for low-income
3
patients of the 340B covered entity.

4

Section 20.
340B drug discount program reporting.
5

(a) On or before September 1, 2026 and on or before
6
September 1 of each year thereafter, each 340B covered entity
7
shall annually report to the Department of Insurance, with
8
respect to the 340B covered entity and separately for each
9
offsite outpatient facility associated with the 340B covered
10
entity, the following information about the prior year, in a
11
form and manner determined by the Department:
12

(1) delineated by form of insurance or payor type,
13

including, but not limited to, Medicaid, Medicare,
14

commercial insurance, and uninsured:
15

(A) the aggregated acquisition cost paid for all
16

340B drugs;
17

(B) the aggregated payments received by insurers
18

or payors for all 340B drugs; and
19

(C) the total number of prescriptions and
20

percentage of the 340B covered entity's prescriptions
21

that were filled with 340B drugs;
22

(D) the percentage of patients served by a sliding
23

fee scale for 340B drugs at the point of sale for
24

patients with family incomes less than 200% of the
25

Federal Poverty Guidelines;

SB3878
- 4 -
LRB104 20391 BAB 33851 b
1

(2) the total operating costs of the 340B covered
2

entity and itemized costs for:
3

(A) implementing direct pass-through of 340B
4

program discounts to patients in the form of lower
5

cost sharing for 340B drugs at the point of dispensing
6

or administration;
7

(B) implementing a sliding fee scale for 340B
8

drugs at the point of sale for patients with family
9

incomes less than 200% of the poverty guidelines
10

updated periodically in the Federal Register by the
11

U.S. Department of Health and Human Services under the
12

authority of 42 U.S.C. 9902(2); and
13

(C) charity care;
14

(3) the total payments made to:
15

(A) 340B contract pharmacies for 340B
16

program-related services and other functions;
17

(B) third-party administrators for managing any
18

components of the 340B covered entity's 340B program;
19

and
20

(C) any other third parties in connection with
21

340B program-related compliance, legal, educational,
22

or administrative costs;
23

(4) the total number of 340B contract pharmacies and:
24

(A) the number of 340B contract pharmacies located
25

out-of-state and the states in which the out-of-state
26

340B contract pharmacies are located;

SB3878
- 5 -
LRB104 20391 BAB 33851 b
1

(B) the total number of prescriptions and the
2

percentage of the 340B covered entity's prescriptions
3

that were filled at 340B contract pharmacies,
4

delineated by in-state and out-of-state 340B contract
5

pharmacies;
6

(C) the total remuneration paid to or retained by
7

340B contract pharmacies or their affiliates for any
8

340B program-related services performed on behalf of
9

the 340B covered entity; and
10

(D) the percentage change in paragraph (3) of
11

subsection (a) compared to the prior year.
12

(b) An officer of the 340B covered entity shall certify
13
the completeness and accuracy of the report submitted pursuant
14
to subsection (a).
15

(c) On or before December 31, 2026 and on or before
16
December 31 of each year thereafter, the Department shall post
17
all reports submitted by 340B covered entities pursuant to
18
subsection (a) on a publicly accessible website.

19

Section 25.
Employer study.
On or before December 31,
20
2026, the Department of Central Management Services shall
21
submit a report to the General Assembly on any impact to the
22
State employee health plan arising from 340B covered entity
23
purchases, 340B contract pharmacy arrangements, and general
24
practices related to 340B drugs, regardless of whether the
25
340B drugs were self-administered or provider-administered.

SB3878
- 6 -
LRB104 20391 BAB 33851 b
1
The report shall include, but not be limited to, an analysis of
2
foregone rebates, the impact on premiums, and the impact to
3
State employee out-of-pocket costs.

4

Section 30.
Medical assistance study.
5

(a) On or before December 31, 2026, the Department of
6
Healthcare and Family Services shall report to the General
7
Assembly on the following for total aggregated covered
8
outpatient drug units dispensed or administered in the State
9
for the prior calendar year in connection with the medical
10
assistance program under the Illinois Public Aid Code, broken
11
out by fee-for-service and by each managed care plan:
12

(1) the number of dispensed or administered covered
13

outpatient drug units;
14

(2) the number of dispensed or administered covered
15

outpatient drug units that were subject to a rebate under
16

42 U.S.C. 1396r-8;
17

(3) the number of dispensed or administered covered
18

outpatient drug units where for which pricing was obtained
19

by the 340B covered entity and the number of units billed
20

by 340B contract pharmacies; and
21

(4) the reasonable estimate of net costs or savings to
22

the State's medical assistance program due to 340B covered
23

entity purchases of covered outpatient drug units at 340B
24

pricing.
25

(b) To the extent the Department lacks a required item

SB3878
- 7 -
LRB104 20391 BAB 33851 b
1
under subsection (a), the Department shall provide a
2
reasonable estimate based on all available information and an
3
explanation of the information that the Department lacks.

4

Section 35.
Claims data.
Nothing in this Act shall deny,
5
restrict, or prohibit a manufacturer from requiring a 340B
6
covered entity to provide claims information for the
7
manufacturer's 340B drugs.

8

Section 99.
Effective date.
This Act takes effect upon
9
becoming law.

Footer

Disclaimer

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.

Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.
Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn