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Why did drugmakers support the 340B program when it was created? Because they wanted access to the Medicaid market. Saying yes to 340B meant saying yes to having their medications covered by Medicaid and Medicare Part B. As a condition of participation, Big Pharma must provide significant discounts on outpatient drugs purchased by hospitals and Federally Qualified Health Centers (FQHCs) serving large numbers of low-income and uninsured patients.

The federal program, enacted in 1992, wasn’t just designed to help hospitals and FQHCs “stretch scarce federal resources” to better serve vulnerable populations. It was designed to fix an unintended consequence of the Medicaid Drug Rebate Program—revealed when drugmakers dropped the required voluntary discounts included with their best market price.

Fast forward to the early 2020s, when drugmakers—in a parallel move—began restricting pharmacy contracts with 340B hospitals and FQHCs. House Bill 2371 is another necessary fix as Big Pharma is now skirting 340B program requirements despite the harm to patients.

Hospitals and FQHCs are focused on providing the healthcare Illinoisans need while Big Pharma is focused on shareholders and dividends. In November, Eli Lilly became the first drugmaker with a $1 trillion market value. Its $65.2 billion revenue in 2025 reflected a 45% increase over 2024. Big Pharma’s priority is clear.

Stand with patients and your local hospital and FQHC. Vote YES on HB 2371 to restore 340B. Learn more.