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Drug Costs Are Rising: 340B Legislation Helps Lower Costs, Strengthen Communities
Thursday, Feb 26, 2026 - Posted by Advertising Department [The following is a paid advertisement.] Nearly 40% of Illinois residents get their health coverage through Medicaid and Medicare. Yet, government providers do not cover the full cost of care. For Medicare, Illinois hospitals are reimbursed 88 cents on the dollar, while it’s 66 cents per dollar for Medicaid. All Illinois hospitals provide the same high-quality, lifesaving care to their patients, regardless of whether their insurance covers the cost. Just as everyday Americans are pinched by higher prices, from housing to groceries, hospitals too are confronting real financial challenges. Between 2022 and 2025, hospitals in Illinois, Wisconsin, Indiana, Michigan, and Ohio experienced:
• 16% increase in non-labor expenses • 19% increase in supply costs • 22% increase in drug costs • 31% increase in purchased services Meanwhile, drugmakers plan to raise the U.S. prices of at least 350 branded medications this year, about 100 more than in 2025. They only plan to lower the prices of nine drugs. Last spring, the Senate unanimously passed House Bill 2371 to protect the over 30-year-old federal 340B drug discount program. HB 2371 does not ask drugmakers to do anything new, but to do their part in lowering drug costs for hospitals and Federally Qualified Health Centers (FQHCs) that serve many low-income patients. HB 2371 would simply restore the 340B program in Illinois, as intended in federal law. Stand with hospitals, FQHCs and their patients: Pass HB 2371. Learn more.
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