iBIO - Illinois Biotechnology Industry Organization

10/10/2025 | Press release | Distributed by Public on 10/10/2025 11:06

Setting the Record Straight on 340B in Illinois

Setting the Record Straight on 340B in Illinois

by John Conrad| Oct 10, 2025| Policy News

There's been a lot of misinformation circulating about the 340B Drug Pricing Program and HB2371 in Illinois. Let's separate fact from fiction.

We've been hearing some wild claims from hospital lobbying groups about what will happen if HB2371 doesn't pass. Here's what you need to know:

CLAIM: "Voting NO on HB2371 will end the 340B program and force hospitals to close."

FACT: The 340B program is a federal program that will continue to operate exactly as it does today, regardless of any state legislation. No state law can end a federal program.


CLAIM
: "340B hospitals need this expansion to survive and serve vulnerable patients."

FACT: Recent comprehensive analysis shows that after enrolling in 340B, hospitals:

  • Increased financial investments by 89% per bed (stocks, bonds, financial instruments)
  • Directed one-third of every 340B dollar to investment portfolios
  • Decreased uncompensated care by 22% per bed
  • Kept staffing completely flat despite massive revenue growth

In Illinois specifically, charity care at 340B hospitals plummeted from 4.80% to 2.14% between 2012-2022 - that's 6.5% below the national average.


CLAIM
: "Patients benefit from the 340B program."

FACT: The Congressional Budget Office's September 2025 report found "no evidence that patients benefit from the program." Instead, CBO found that 340B drives up costs for taxpayers and incentivizes more expensive care settings.

THE REAL COST OF HB2371:

  • Illinois Medicaid has already lost $238.4 million in rebates due to 340BHB2371 would cost an additional $52 million annually
  • Total impact: Over $290 million in taxpayer dollars
  • $16 of every $100 in 340B revenue goes to contract pharmacy middlemen - not patients


THE BOTTOM LINE:

The data is clear. 340B hospitals are building Wall Street investment portfolios while cutting charity care. HB2371 would expand this broken system at a cost of $290+ million to Illinois taxpayers - with zero transparency requirements and zero evidence of patient benefit.

The 340B program will continue to operate whether or not HB2371 passes. The question is: should Illinois expand a program that enriches hospital portfolios and pharmacy middlemen instead of helping vulnerable patients?

iBIO - Illinois Biotechnology Industry Organization published this content on October 10, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 10, 2025 at 17:06 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]