PBM Transparency Legislation Amended and Passed Senate

The Iowa Senate on Wednesday amended SF 563, which was legislation geared toward the pharmacy benefit manager (PBM) industry often seen as the “middleman” when it comes to prescription drugs and pricing that employers and consumers ultimately pay. The initial bill included a rebate requirement that would mandate that the consumer get a majority of the rebate, which could affect employers' costs and the benefits they offer to all employees. The amendment that was adopted stripped that provision, and ABI no longer has concerns about the bill. As you have read, this is also an issue on the federal level, and the Senate Finance Committee chaired by Sen. Grassley (R-IA) is currently hearing from pharmaceutical companies and PBMs about their pricing approaches.