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Federal Court Dismisses PCMA Lawsuit Against the State of Iowa

The Southern District Court of Iowa granted the State of Iowa's motion to dismiss the remaining complaints of the Pharmaceutical Care Management Association's (PCMA) lawsuit against it over the state's pharmacy benefit manager (PBM) regulation law.
Pharmacists in Iowa and across the country are claiming victory as the Southern District Court of Iowa granted the State of Iowa's motion to dismiss the remaining complaints of the Pharmaceutical Care Management Association's (PCMA) lawsuit against it over the state's pharmacy benefit manager (PBM) regulation law. Following the dismissal of four claims in February, yesterday's ruling on the two remaining claims fully dismissed the case made by PCMA.

“The dismissal of all six of PCMA's claims to uphold the PBM legislation passed in the state of Iowa is a victory for pharmacies and healthcare consumers, not only in our state but across the country,” stated Kate Gainer, CEO of the Iowa Pharmacy Association.

PCMA, the national trade association for PBMs, filed the lawsuit on September 2, 2014 against Iowa's Insurance Commissioner and Attorney General over section 501B.8 of the Iowa Code. H.F. 2297, which passed both chambers of the State Legislature unanimously before being signed by Governor Terry Branstad in 2014, required that PBMs disclose their Maximum Allowable Cost (MAC) pricing lists and methodology as requested by the Iowa Insurance Commissioner. Pharmacists and healthcare consumers advocated for this legislation to bring greater transparency to PBM business practices in the state.

In its dismissal, the court states that “Section 510B.8 by its terms regulates PBMs, which are entities that are heavily involved in the administration of healthcare to Iowans… The State has a legitimate interest in regulating and preserving the health of its citizens.”

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