Iowa's PBM reform bill (SF 383) passed the Senate 36-14 with amendment on Monday, April 28. The bill now moves to the House for consideration by the full chamber and is one step closer to the Governor's desk.

HF 852 and SF 383 address the devastating business practices of pharmacy benefit managers (PBMs). PBMs act as middlemen, controlling drug pricing, formularies, and pharmacy reimbursement rates. Today, three PBMs manage 80% of all prescriptions filled in the United States, creating an anti-competitive marketplace with enormous influence over pharmacies and patients alike.

In 2024, more than 30 local pharmacies closed their doors, unable to continue serving Iowa patients due to unfair reimbursement rates, PBMs steering patients to their own pharmacies, and other opaque business practices. This legislation (HF 852/SF 383) combats discriminatory PBM practices, restores patient choice, and enforces adequate reimbursement to Iowa pharmacies.

“The Iowa Pharmacy Association thanks the Iowa Senate for taking bold action to pass PBM reform in Iowa. These issues affect pharmacies in all corners of the state in both rural and urban communities. It's time to hold PBMs accountable and protect patient access to their local pharmacist and pharmacy services,” said Kate Gainer, Executive Vice President & CEO of the Iowa Pharmacy Association.

Learn more about PBM reform and the impact on Iowa pharmacies and patients at patientsfirst.org/Iowa.