Reynolds PBM Law: Iowa Regulations Signed
- Kim Reynolds has enacted Senate File 383, legislation designed to regulate pharmacy benefit managers (PBMs) and reduce prescription drug costs.
- PBMs, acting as intermediaries between drug manufacturers, insurers, and pharmacies, negotiate drug prices and rebates. Representative Brett Barker, a pharmacist and the bill's sponsor, stated that PBM practices...
- under the new regulations, PBMs must reimburse pharmacists a $10.68 dispensing fee for preparing and dispensing medications.
Iowa’s healthcare landscape shifts as Governor Reynolds signs Senate File 383, a landmark bill regulating pharmacy benefit managers (PBMs), a move designed to lower prescription drug costs. The new law mandates a $10.68 dispensing fee for pharmacists, a key provision intended to alleviate financial pressures. However, the Iowa Association of Business and Industry (ABI) and other business groups raise concerns, predicting potential cost increases for Iowans. This legislation,effective July 1,reflects a nationwide trend toward PBM reform. News Directory 3 will continue to monitor the situation. Discover what’s next as Iowa navigates the implications of this significant healthcare reform and anticipates the Iowa Insurance Division’s report.
Iowa Governor Signs Pharmacy Benefit Manager Reform Bill
Updated June 13, 2025
Iowa Gov. Kim Reynolds has enacted Senate File 383, legislation designed to regulate pharmacy benefit managers (PBMs) and reduce prescription drug costs. The new law, set to take effect July 1, has garnered both support and opposition.
PBMs, acting as intermediaries between drug manufacturers, insurers, and pharmacies, negotiate drug prices and rebates. Representative Brett Barker, a pharmacist and the bill’s sponsor, stated that PBM practices have driven up costs for pharmacists, leading to the closure of 200 small pharmacies in iowa over the past decade. He told the Business Record that pharmacists are not always fully reimbursed for their costs when distributing some medications.
under the new regulations, PBMs must reimburse pharmacists a $10.68 dispensing fee for preparing and dispensing medications. Proponents argue this will alleviate financial strain on pharmacies.
However, the Iowa Association of Business and Industry (ABI) and other business groups opposed the bill, projecting a potential $340 million increase in costs for Iowans.
“ABI is disappointed in today’s action…Senate File 383 includes expensive, unneeded provisions that are going to drive up the costs of pharmacy services in Iowa without any discernable enhancement in patient care,” ABI said in a statement.
Reynolds acknowledged the complexity of the issue and the lack of definitive data in her decision to sign the bill. She noted that similar legislation has been passed in Texas,Georgia,Indiana,and Montana this year.
“After extensive research and thoughtful conversations with employers and stakeholders on all sides of this complex issue, I made the decision to sign SF 383 in an effort to continue improving our health care system by bringing greater accountability to the role of Pharmacy Benefit Managers,” Reynolds said.
the governor added that her administration will closely monitor the law’s implementation to address any unintended consequences for private employers. The Iowa Insurance Division will oversee the new law and produce a report on its impact.
What’s next
The Iowa Insurance Division will monitor the effects of the new law and report on its impact, while the Reynolds administration will watch for unintended consequences affecting employers.