Relating to the regulation of pharmacy benefits managers

Sponsored by the House Commerce Committee

Topics:Business & economy Health care Prescription drug prices

Same legislation: SF 2357

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedJanuary 22, 2024
Skipped: SubcommitteeSkipped
Done: House committeeFebruary 21, 2024
Done: Passes the HouseFebruary 21, 202497–0
Done: Senate committeeMarch 14, 2024
Done: Passes the SenateApril 17, 202446–0
Done: To the GovernorApril 23, 2024
Done: Signed into lawMay 1, 2024

Signed into law What’s a funnel?

What’s in it

This bill relates to the regulation of pharmacy benefits managers (PBMs). Under current law, a PBM owes a duty of good faith and fair dealing to third-party payors. The bill expands that duty to pharmacies. The bill prohibits retaliation by a PBM against a pharmacy based on the pharmacy’s exercise of any right or remedy, or on the pharmacy’s cooperation with the commissioner. Prohibited retaliation includes terminating or refusing to renew a contract with a pharmacy, subjecting a pharmacy to increased audits, or withholding or failing to promptly pay the pharmacy any money owed by the PBM.

Read the full explanation

Current law prohibits a PBM from assessing, charging, or collecting any form of renumeration that passes from a pharmacist in a pharmacy network to the PBM. Under the bill, a PBM is prohibited from assessing, charging, or collecting any form of renumeration that passes from any pharmacist, regardless of whether the pharmacist is in a pharmacy network. Under current law, for each maximum allowable cost list that a PBM uses, a PBM shall update the maximum allowable cost list within seven days from the date of an increase of percent or more in the pharmacy acquisition cost of a prescription drug on the list. Under the bill, for each maximum allowable cost list that a PBM uses, a PBM shall update the maximum allowable cost list within seven days from the date of an increase of percent or more in the national average drug acquisition cost of a prescription drug on the list. The bill requires that the annual report provided by a PBM to the commissioner of insurance regarding prescription drug benefits provided to covered persons of each third-party payor with whom the PBM has contracted during the prior calendar year be in a format that does not publicly disclose the identity of a specific third-party payor, the price charged by a specific pharmaceutical manufacturer for prescription drugs, or the amount of rebates provided for prescription drugs.

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text · What changed before it passed

Iowa Code it changes

Creates§510B.4A

Amends§510B.1 §510B.4 §510B.7 §510B.8A §510C.2

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works

Lobbying

6 for · 0 against · 16 undecided · Who →

Family tree

Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.

90th General Assembly

HF 2099Became lawHouse companion SF 2357Didn’t advanceSenate companion

Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.