Iowa Senate Bill SF419

Iowa 2023-2024 Regular Session

• Introduced: 2/27/23

Caption

A bill for an act relating to contract pharmacies and covered entities that participate in the 340B drug program.(Formerly SSB 1098.)

Impact

The bill is designed to enhance access to medications by ensuring that covered entities and contract pharmacies can effectively leverage the discounts available through the 340B program. By establishing clear prohibitions against discriminatory reimbursement practices, SF419 aims to reduce potential financial burdens that could limit the ability of these entities to serve their patients. The Iowa commissioner of insurance is granted authority to enforce compliance with the bill, allowing for penalties against those who violate these provisions.

Summary

Senate File 419 (SF419) aims to protect contract pharmacies and covered entities participating in the federal 340B drug program by prohibiting discrimination in reimbursement from group health plans, health carriers, third-party administrators, and pharmacy benefits managers (PBMs). Specifically, the bill mandates that these entities must not reimburse covered entities or contract pharmacies at rates lower than those paid to similar entities not involved in the 340B program. This seeks to ensure equitable treatment and financial integrity for providers serving vulnerable populations.

Contention

A notable point of contention surrounding SF419 includes concerns from pharmacy benefits managers and certain health carriers regarding the potential financial impact of the mandated reimbursement levels. Critics argue that the bill may lead to increased costs for the insurance plans, potentially resulting in higher premiums for consumers. Proponents, however, argue that the legislation is essential for safeguarding health services for low-income and underserved populations that depend on the 340B program for essential medications.