Pharmacy Benefits Manager Bill Remains Under Consideration in Iowa Senate

For many weeks, the legislature has considered legislation to regulate the relationship between local independent pharmacies and pharmacy benefit managers (PBMs) who work to drive down the cost of pharmacy benefit plans by negotiating best prices for pharmaceuticals from drug manufacturers and their wholesalers on the one hand, while managing payments and practices of local pharmacies on the other. 

HF 2384 contains six elements sought by local pharmacies to improve their working relationship with PBMs. With minor changes to two of those elements, ABI would be satisfied that the legislation would address the unnecessary costs of the bill, while delivering this goal for local pharmacies. One element of the bill, which does not regulate PBM behavior, would, for the first time, subject federally regulated, self-insured ERISA health plans to state regulation. ABI has asked that this provision be stricken from the proposal because it affects companies that take on all the risk of the costs of providing health care to their employees. This would even apply to groups like the rural electric cooperatives. For questions on this issue, or to get involved in advocacy, please email JD Davis or 515-979-1212.