Federal judge blocks Illinois drug pricing law

A federal judge has struck down an Illinois law aimed at lowering prescription drug prices, blocking state officials from enforcing it. The Illinois Prescription Drug Affordability Act, signed in July 2025 and effective January 1, regulated pharmacy benefit managers. A coalition of those managers sued, arguing the state law conflicts with federal law governing employee healthcare benefit plans. The court ruled that federal law preempts state-specific mandates on such plans. The decision prevents Illinois from implementing its own regulations, marking a setback for state-level drug pricing reform efforts.