DES MOINES, Iowa– The Iowa Pharmacy Association is praising the introduction of legislation aimed at reforming Pharmacy Benefit Manager (PBM) practices after pharmacies suffered in 2024.

PBMs are the so-called middlemen between pharmacies and insurance companies. They determine the total drug costs for insurers, shape patient’s access to medications, and determine how much pharmacies are paid.

Pharmacies across Iowa are dispensing prescriptions at a loss because of PBM policies, meaning pharmacies are get paid less than it costs for them to distribute prescriptions. This has been the leading cause of the growing amount of pharmacy closures across the state.

According to the IPA, 29 pharmacies in Iowa have closed in 2024, doubling the typical amount of pharmacy closures in a year.

Kate Gainer is the CEO of the Iowa Pharmacy Association. She says that pharmacy deserts, or areas without adequate access to pharmacies, are growing common across the state, limiting access to healthcare.

House Study File 99 and Senate Study File 1074 mirror each other in language and were both introduced to their respective chambers on Wednesday.

“We see it as an incredibly positive piece of legislation that will not only help pharmacy owners and pharmacy viability across the state, but ultimately help consumers and Iowans who take prescription drugs and are worried about the cost of their prescription drugs.”

The legislation would require PBMs to reimburse pharmacies their cost and enable patients to choose the pharmacy they want to receive care from.

While PBM reform has been unsuccessful at the Iowa legislature in previous years, Gainer says the IPA believes 2025 is finally the year for reform.

HSF99 will be considered by an Iowa House Commerce Subcommittee on Wednesday February 5th at noon in room 103.

Wednesday is also the Iowa Pharmacy Association’s Pharmacy Day on the Hill from 10 a.m. through 6 p.m. They will discuss their legislative goals, including this proposed legislation.