Governor Branstad Signs PBM Bill, Supports Access to Local Pharmacy Services
Iowa's PBM bill – House File 2297 – requires PBMs have greater transparency, oversight, and MAC pricing regulations by the Iowa Insurance Division.Iowa's PBM bill – House File 2297 – requires PBMs have greater transparency, oversight, and MAC pricing regulations by the Iowa Insurance Division. This legislation was introduced by the Iowa Pharmacy Association to seek clear statutory authority after the Iowa Insurance Division was unable to accomplish these requirements via administrative rules. IPA's top legislative priority in 2014 relates to PBM regulation.
HF 2297 passed with bipartisan, unanimous support in the Iowa House of Representatives and the Iowa Senate. Numerous Representatives and Senators from both sides of the aisle were vocal supporters when the bill was debated in each chamber.
Throughout the process, the PBM industry opposed the legislation and requested opportunities to compromise the language. The Iowa Pharmacy Association, along with other pharmacy stakeholders, remained steadfast in upholding the language as introduced in the bill, including disclosure requirements of MAC methodology, demonstrating MAC prices determined by drugs available to Iowa pharmacies for purchase, and limiting MAC pricing to multiple-source generic drugs following the generic exclusivity period and A-rated generics only. Over 300 pharmacists across the state personally communicated with their legislators, creating a strong grassroots effort.
Gov. Branstad's signature on HF 2297 makes Iowa the eighth state to pass legislation related to MAC pricing policies, transparency, and oversight. Kate Gainer, IPA's Executive Vice President, states, “We are incredibly pleased to have Gov. Branstad's signature on the PBM bill. The unanimous legislative support was due in no small part to the tremendous grassroots efforts from IPA members. Pharmacists from all practices, in nearly every legislative district, took the time to call and email their legislators. Thanks to the efforts of many, PBMs operating in Iowa will now have to play by new rules.”