PBM Accountability Project of Iowa Applauds State Legislature for Passing Needed PBM Reform Legislation

SF 383 will help protect Iowa pharmacies, lower prescription drug costs for patients

Des Moines, IA – The Iowa State Legislature passed SF 383 through both the Senate and House of Representatives, which includes several reforms to how pharmacy benefit managers (PBMs) can operate in the state and impact patient out-of- pocket costs for prescription medicines. The legislation will provide relief to pharmacies by preventing PBMs from steering patients toward their own PBM-owned chain pharmacies or mail order services. The bill will also help lower patient costs by requiring PBMs to count third party coupons or payments toward a patient’s out of pocket costs and ensuring any rebates a PBM negotiates with manufacturers are passed on to patients.

“Iowa pharmacists have been fighting for these meaningful PBM reforms for years,” said Kate Gainer, CEO of the Iowa Pharmacy Association. “In 2024, 32 Iowa pharmacies closed their doors. Half urban, half rural. Half independent, half chain. All closed due to unfair practices of PBMs. This legislation will help prevent more losses, ensuring that Iowa patients still have trusted, local pharmacists and access to healthcare.”

“We applaud Iowa lawmakers for passing this critical reform bill and helping Iowans better afford and access their medicines,” said Jeanne Burmeister, executive director of Prevent Blindness Iowa. “For too long, PBMs have been incentivized to drive up costs and steer patients away from their local pharmacies – even putting those trusted resources out of business. This bill marks a huge step in the right direction – putting patients before PBMs.”

“Our rural communities suffer when independent pharmacies struggle,” said Dwight Baldwin from the Iowa State Grange. “This legislation will help protect pharmacists and rural patients alike. We must continue to build on this momentum and address the many ways PBMs are driving up our costs and limiting access to the medicines we need.”

To learn more about how PBMs drive up costs, and proven legislative solutions, visit pbmaccountabilityia.org.

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