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