Bills › 91st General Assembly

SSB 1207Died when the session ended · March 6, 2025

Relating to pharmacy benefits managers, pharmacies, and prescription drugs

Topics:Business & economyHealth carePrescription drug prices

Where it is now

  1. Done: IntroducedMarch 5, 2025
  2. Done: SubcommitteeMarch 5, 2025
  3. Stopped: Senate committeeDied when the General Assembly ended
  4. Next: Passes the Senate
  5. Next: House committeeFunnel: by March 20, 2026
  6. Next: Passes the House
  7. Next: To the Governor
  8. Next: Signed into law

Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

AI summary Pharmacy benefit managers would no longer be allowed to force people to use mail-order pharmacies for most prescription drugs. These managers must also pass all drug rebates to health insurance companies or employers to help lower costs. Additionally, the bill sets specific rules for how pharmacies are paid for filling prescriptions and bans a practice called spread pricing in new contracts.1

Read the official explanation

This bill relates to pharmacy benefits managers, pharmacies, and prescription drugs. _____ pharmacy services, exclusively through a mail order pharmacy. “Specialty drug” is defined in the bill. Under the bill, 100 percent of all rebates received by a PBM shall be passed through to the health carrier or employer plan sponsor to reduce premiums. “Pass-through pricing” is defined in the bill. Under the bill, for a prescription filled at a pharmacy with five or less locations, a PBM shall reimburse the pharmacy or pharmacist a $3 professional dispensing fee. For a prescription filled at a pharmacy with six or more locations, and that has any location located in a pharmacy desert, a PBM shall reimburse the pharmacy in the pharmacy desert a professional dispensing fee of $3. “Pharmacy desert” is defined in the bill. Under the bill, all contracts executed, amended, adjusted, or renewed on or after July 1, 2025, that apply to prescription drug benefits on or after January 1, 2026, between a PBM and a third-party payor, or between a person and a third-party payor, shall prohibit the practice of spread pricing. “Spread pricing” is defined in the bill.

Full bill text2

Senate subcommittee

Named March 5, 2025. On March 6, 2025 it recommended amendment and passage.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

1 written public comment to its subcommittee: March 6, 2025 (1) · on the Legislature’s site

Iowa Code it changes

Creates§510B.4B§510B.8D

Amends§510B.1§510B.8§510B.8B

How the Code works3

Lobbying

6 for · 3 against · 16 undecided · Who →