Iowa Senate Bill SSB3079

Iowa 2023-2024 Regular Session

• Introduced: 1/17/24
• Refer: 1/17/24

Caption

A bill for an act relating to the regulation of pharmacy benefits managers.(See SF 2357.)

Impact

The bill explicitly prohibits retaliation by PBMs against pharmacies for exercising their rights or cooperating with regulatory authorities. Actions classified as retaliation include contract termination, increased audits, and delays in payments. This provision seeks to create a safer environment for pharmacies, encouraging them to report issues without fear of penalty. By safeguarding pharmacies from adverse actions, the bill intends to foster a more transparent and fair healthcare system, particularly regarding the interactions with PBMs.

Summary

Senate Study Bill 3079 focuses on the regulation of pharmacy benefits managers (PBMs), expanding their responsibilities to include a duty of good faith and fair dealing not only to third-party payors but also to pharmacies. This change addresses ongoing concerns regarding the fairness of the interactions between PBMs and pharmacies, which are essential players in the healthcare system. The legislation aims to enhance the operational environment for pharmacies, ensuring that they have greater protection against potentially exploitative practices by PBMs.

Contention

While proponents assert that SSB3079 will improve conditions for pharmacies and enhance patient access to medications, opponents may raise concerns about the balance of power within the healthcare system. Potential contention could arise around how these protections might affect PBMs' operational flexibility and the overall costs associated with managing pharmacy benefits. Additionally, detractors may worry that the bill could result in unintended consequences, such as increased operational costs being passed on to consumers.