Iowa Senate Bill SF383

Iowa 2025-2026 Regular Session

• Introduced: 2/19/25
• Engrossed: 4/28/25
• Enrolled: 5/19/25
• Enrolled: 5/14/25
• Passed: 6/11/25

Caption

A bill for an act relating to pharmacy benefits managers, pharmacies, prescription drugs, and pharmacy services administrative organizations, and including applicability provisions. (Formerly SSB 1074.) Effective date: 07/01/2025. Applicability date: 07/01/2025.

Impact

The legislation's impact extends to state laws regulating the pharmacy industry, particularly in terms of reimbursement processes and the role of PBMs. By prohibiting discriminatory practices, the bill seeks to ensure fair competition among pharmacies, which could lead to decreased prices for consumers and better access to medications. The bill also aims to ensure that any rebates received by PBMs are passed through to consumers or health plans, potentially lowering overall costs in the system and making healthcare more affordable.

Summary

Senate File 383 aims to reform regulations surrounding pharmacy benefits managers (PBMs) and improve access to pharmaceuticals for patients in Iowa. It establishes new guidelines to prevent discrimination against pharmacies and pharmacists, ensuring that all are allowed to participate under identical reimbursement terms within health benefit plans. Additionally, it mandates the pass-through pricing model, which requires that payments made by payers to PBMs match the payments that PBMs make to pharmacies for the same services, thereby increasing transparency in drug pricing.

Sentiment

The overall sentiment around SF383 is mixed, with supporters advocating for increased fairness and transparency within the pharmacy benefit structure, while critics express concerns about the potential administrative burdens this could impose on PBMs and health plans. Advocates for this bill argue that it will lead to a more competitive market and better patient outcomes, while opposition voices are wary of regulatory overreach and potential unintended consequences.

Contention

Notable points of contention surrounding SF383 include the balance between regulation and administrative efficiency. Some stakeholders, particularly within the PBM industry, argue that increased regulations could lead to higher operational costs, ultimately being passed on to consumers. Additionally, there are concerns about whether the bill's requirements may stifle innovative practices that PBMs have developed to manage prescription drug costs. This tension highlights the ongoing debate over how best to reform healthcare systems while ensuring fair access and efficient service delivery.