IPA Praises the Introduction of HSB 99, Reforming PBM Practices and Putting Patients First

• By: IPA
• On: 01/29/2025 11:00:39
• In: Press Releases
• Comments: 0

The Iowa Pharmacy Association praises the introduction of HSB 99 in the Iowa Legislature. This legislation will reform the harmful practices of Pharmacy Benefit Managers (PBMs) by restoring patient freedoms, combating discriminatory PBM practices, and enforcing adequate reimbursement to Iowa pharmacies.
 
“Over the past decade, Iowa has lost more than 150 pharmacies due to the unjust practices of PBMs within our healthcare system. 29 pharmacies closed in 2024 alone, nearly doubling the number of closures we've witnessed year over year,” said Kate Gainer, CEO of the Iowa Pharmacy Association. “Patients pay the price with growing pharmacy deserts across the state and reduced access to care. Local pharmacies are desperate for PBM reforms to help keep their doors open. HSB 99 will restore patient freedoms, protect healthcare access, and strengthen Iowa's healthcare and pharmacy infrastructure.”

PBMs act as middlemen, controlling drug pricing, formularies, and pharmacy reimbursement rates. They are owned by major insurance companies who also own pharmacies. Due to decades of mergers and acquisitions, the three largest PBMs manage 80% of all prescriptions filled in the U.S., creating an anti-competitive marketplace where PBMs wield enormous power and influence over pharmacies and patients alike. 
 
HSB 99 will help Iowa patients and local pharmacies:
 
Patient Freedom – HSB 99 enables patients to choose the pharmacy they want. Today, PBMs can steer patients to use mandatory mail-order services or make it more expensive or impossible to use the pharmacy in their community.
 
Pharmacy Reimbursement – HSB 99 requires PBMs to reimburse pharmacies their cost. Today, PBMs do not reimburse pharmacies fairly, paying below what it costs for them to purchase and dispense the drug. Pharmacies often lose money when dispensing prescriptions, which leads to pharmacy closures.
 
Healthcare Transparency – HSB 99 shines a light on PBM practices that harm patients and increase health care costs such as charging employers more than they reimburse pharmacies and pocketing the difference. 
 
The Iowa Pharmacy Association looks forward to working alongside legislators to pass the meaningful reforms included in HSB 99, helping to combat the increasing rate of pharmacy closures and to ultimately lower drug costs for Iowans by reforming the PBM model of putting profits above patients.