COLFAX, Iowa — The Spring City Pharmacy in Colfax has provided prescriptions for community members for 120 years, but it’s also known for its pop from a historic soda fountain and homemade ice cream.

The pharmacy is located at the busiest intersection in downtown Colfax and brings business to the surrounding shops in the community.

It’s been a staple local business since 1905. For 110 years, it was owned by a local family until they sold it to an out-of-state company in 2015. That company closed the pharmacy three years ago.

In an attempt to save the town pharmacy, three locals who had no experience in running a pharmacy put their resources into keeping it open.

However, last month the owners foresaw its permanent closure if reforms weren’t passed on a state level.

The Spring City Pharmacy, like many others across the state, was voicing concerns about the practices of pharmacy benefit managers (PBMs), or the middlemen between pharmacies and insurance companies. PBMs determine the total drug costs for insurers, shape patients’ access to medications, and determine how much pharmacies are paid.

Several Iowa pharmacies have shared with WHO 13 News that PBMs have not paid them at fair rates. Many have reported that PBMs are paying them less money than it costs to purchase drugs and distribute prescriptions.

For these same reasons, a historic 31 pharmacies in the state have closed in 2024, and the Iowa Pharmacy Association said many more were anticipating closure in 2025.

However, a PBM reform bill was being debated in the Iowa Legislature this year. The owners of Spring City Pharmacy said if this legislation were passed, the pharmacy would be able to keep its doors open.

Critics of the bill said it would cause premiums to increase. However, similar legislation has been passed in several other states across the country, and data collected in these states does not suggest an increase in premium costs.

After failing in the legislature over the last three years, the Iowa House passed the bill last week, and the future of the bill will be determined by Governor Kim Reynolds.

Brad Magg, one of the owners of Spring City Pharmacy, was at the Iowa State Capitol last week when the bill was passed. He’s hopeful the Governor will sign the bill into law.

“While we still have ways to go it’s easier to dig that hole while there’s a light at the end of the tunnel instead of just digging deeper and deeper and deeper,” he said.

Many Colfax residents are also hoping the Governor signs the bill to ensure the pharmacy stays open. They say the store is more than just a pharmacy and is a one-stop shop because it sells several different items.

“I can’t tell you how many times I’ve come down here because a family member has an occasion… it’s like a Hallmark store over here,” said City Administrator Wade Wagoner.

The most notable amenities in the pharmacy are the historic soda fountain and the homemade ice cream. Many young kids always stop for a sweet treat after school or while picking up medication when they are sick.