DES MOINES, Iowa — The Iowa House on Monday passed the pharmacy benefit manager (PBM) reform bill and sent it to the governor’s desk.

PBMs are entities that negotiate the prices for prescription drugs between pharmacies and insurance companies, handle reimbursements to pharmacies, and determines where a patient can get their medications from. Champions for the reform bill say that the current practices of PBMs are detrimental and have resulted in numerous pharmacies closing across the state.

The reform bill, SF 383, passed the House 75 to 15. It requires PBMs to reimburse pharmacies based on the National Average Drug Acquisition Cost for prescription drugs and to reimburse pharmacies with a professional dispensing fee.

Following the passage of the bill, the Iowa Pharmacy Association released a statement thanking the Legislature for protecting Iowa pharmacies and their patients.

We commend the Iowa House for recognizing the urgent need to address PBM middlemen abuses. This bill is a critical step toward protecting Iowa’s local pharmacies and ensuring accountability for PBMs, whose practices have forced Iowa pharmacies to shutter their doors and countless Iowans to lose healthcare access.

With states nationwide enacting similar reforms, we’re grateful the House and Senate have paved the way for Governor Reynolds to sign this bill and safeguard Iowa’s pharmacies and the patients they serve.

Iowa Pharmacy Association CEO Kate Gainer

The bill is now eligible to be signed into law by Governor Kim Reynolds.

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