Illinois distributes first $25M to local pharmacies to help them compete
[June 13, 2026]
By Maggie Dougherty
CHICAGO — Gov. JB Pritzker announced Friday that 434 Illinois pharmacies
will receive nearly $25 million in support, the first distribution of
annual funding established through legislation he signed last year.
The fund was designed to assist pharmacies most at risk of closure or
financial strain, especially those in rural and low-income communities
with limited healthcare access. The pot was split equally between all
eligible applicants, with each pharmacy receiving $56,892.
“Local pharmacies are often one of the most accessible and affordable
points of care for working families, seniors, and Medicaid patients —
providing medications, vaccinations, and trusted health care services,”
Pritzker said in a news release.
The money was established under bipartisan legislation Pritzker signed
last July. The bill, known as the Prescription Drug Affordability Act,
put new regulations on pharmacy benefit managers, or PBMs, companies
that are responsible for negotiating drug prices between employer health
insurance plans and pharmaceutical drug companies.
They have been the target of intense scrutiny in recent years, facing
accusations of steering patients toward their own affiliated pharmacies
and designing healthcare pricing formulas that boost their own profits
rather than patient savings, including a lawsuit from the Federal Trade
Commission against the three largest PBMS for their alleged use of
anticompetitive practices to artificially inflate insulin prices.
The legislation prohibited PBMs from steering customers toward large
pharmacies in which they have a financial interest — often to the
detriment of smaller independent pharmacies — and required they pay a
fee based on the number of individuals in the state enrolled in the
PBM’s plans.
At the time the legislation passed, a lobbying organization representing
the PBMs criticized the bill as “misguided” and said it would have
little to no impact on high prescription drug prices set by “Big Pharma.”
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The first $25 million in fees collected were placed in a special fund
for independent pharmacies, which can use the money to support existing
operations, as well as expansions of business hours and new offerings,
such as telepharmacy services, remote consultations and medication
delivery.
But the funding is not constrained to specific spending options,
allowing pharmacies to use it however they see fit. For a Sav-More
pharmacy in Virden, Illinois, that looks like a new parking lot.
“Limitations with parking, the lack of a drive-through, and space
constraints have made it difficult to expand the services our community
deserves,” said Sav-Mor Pharmacies President David Falk.
The funding has allowed the Virden location to partner with Carlinville
Hospital to construct a new 3,500 square-foot facility next to a new
clinic, featuring “ample parking, modern technology, (and) a
drive-through,” and employing additional staff.
“This project would not have been possible without the vision and
commitment of Governor Pritzker and his administration,” Falk said,
adding that PBM reimbursement practices had hindered independent
pharmacies like Sav-More.
The program, administered by the Department of Commerce and Economic
Opportunity and the Illinois Retail Merchants Association, granted
funding to pharmacies in 252 cities scattered across 94 of the state’s
102 counties.
Prioritized were pharmacies in rural or medically underserved
communities and small independent pharmacies with fewer than 10
locations.
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