Latest news with #IowaPharmacyAssociation
Axios
14-05-2025
- Business
- Axios
Iowa groups urge Reynolds to veto pharmacy reform bill
Several influential business organizations in Iowa are urging Gov. Kim Reynolds to veto a bill that would reform the operations of pharmacy benefit managers (PBMs) in the state — a move they warn could impose hundreds of millions in new costs on employers and consumers. Why it matters: PBMs — middleman companies that negotiate drug prices on behalf of health insurers — are under scrutiny from both pharmacies and lawmakers nationwide for reimbursing pharmacies at rates lower than the cost of acquiring medications. Senate File 383, which passed both chambers with bipartisan support, aims to regulate their practices in response to a wave of pharmacy closures across Iowa. Catch up quick: The legislation includes a $10.68 minimum dispensing fee to be paid to pharmacies by PBMs, a provision supporters say is crucial to keeping small-town pharmacies afloat. More than 200 have closed in Iowa since 2014, including a record 31 last year, according to the Iowa Pharmacy Association. Driving the news: The Iowa Association of Business and Industry (ABI), Iowa Bankers Association, Iowa Business Council and National Federation of Independent Business jointly issued a statement soon after the bill passed the Iowa Senate late Monday, calling it the costliest health care mandate in state history. The groups unsuccessfully backed an amendment that would have limited the dispensing fee to independent pharmacies with annual revenues of less than $250 million. The version of the bill that's now before Reynolds could cost Iowans an additional $340 million annually via higher costs for prescription drugs and insurance, they estimate. Stunning stat: Hy-Vee, Iowa's largest pharmacy retailer, is projected to receive an additional $66 million annually under the bill, according to ABI, which used data from the Kaiser Family Foundation for its estimate. Zoom in: Hy-Vee deferred Axios' request for comment to the Iowa Pharmacy Association, which accused the opponents of using scare tactics and questionable math. The bill could instead help Iowans save on prescription drugs and protect access to local pharmacies like other states have done, Kate Gainer, CEO of the association, tells Axios. The big picture: All 50 states have enacted at least one law in the last decade that regulates pharmacy benefit managers, according to the National Academy for State Health Policy.
Yahoo
13-05-2025
- Health
- Yahoo
Pharmacy Benefit Managers reform bill heads to the Governor
DES MOINES, Iowa — The bill making changes to policies by pharmacy benefit managers (PBMs) is headed to Governor Kim Reynolds' desk. Over the last three years, pharmacies across the state have advocated for a bill that would reform PBM practices. However, the bills have been unsuccessful at passing the Iowa legislature until Monday. PBMs are the middlemen between pharmacies and insurance companies. They determine the total drug costs for insurers, shape patients' access to medications, and determine how much pharmacies are paid. Over the last decade, 200 pharmacies in the state have closed, according to the Iowa Pharmacy Association (IPA). 2024 was a historic year for pharmacy closures, with more than 30. An estimated 955,000 Iowans have been affected by last year's closures. Pharmacists across the state have been voicing concern over corrupt PBM policies. They say these closures are largely the result of PBM practices, including not being reimbursed at fair rates. PBMs often pay pharmacies less money than it costs for the pharmacy to purchase drugs and distribute prescriptions. This was the case for pharmacies in Oskaloosa, Minden, Colfax, and Eagle Grove. The legislation proposed this session would require PBMs to reimburse pharmacies their cost and enable patients to choose the pharmacy they want to receive care from. Critics of the bill say it will cause premiums to increase. However, similar legislation has been passed in several other states across the country, and data collected in these states does not suggest an increase in the cost of premiums. The bill was on the Iowa House's debate schedule on Monday, and was likely the legislation's last chance to pass this session. As a result, over 100 pharmacists and community members went to the Capitol Monday morning to show their support for the bill. Many were optimistic at first, but an amendment filed early Monday morning worried pharmacists in the Capitol's rotunda. The amendment was proposed by State Representative Bill Gustoff of District 40. He provided this statement to WHO 13 News on his proposal: 'The purpose of my amendment was to direct the dispensing fees of SF 383 to those pharmacies that advocates of the bill say they want to help—small, independent pharmacies and those serving so-called 'pharmacy deserts.' The amendment would generously define small and independent pharmacies as having annual revenue below $250 million without regard to its location, and identify those serving rural areas as being at least 10 miles from any other pharmacy without regard to the pharmacy's size. It would do all of that while also retaining the essential PBM reform elements of SF 383. This amendment would have ensured support for true small businesses without saddling all Iowans with higher costs.' State Representative Bill Gustoff, (R) District 40, Polk County State Representative Brett Barker of District 51 is also a pharmacist. He opposed the amendment and said it's detrimental to pharmacies in Iowa. 'It guts the bill. It strikes the core provisions. It actually is a reimbursement [decrease] on your smallest pharmacies, so it's something that absolutely does not help small pharmacies. It would be a step backwards from current law and I'm absolutely advocating against it,' he said. Pharmacists in attendance, like Heidi Van Buren, also voiced concern. She said PBM reform is necessary to keep her pharmacy open. 'I feel like I'm carrying a rock going into a sword fight,' she said. 'If I sign the current contract that [a PBM] has sent to us, my pharmacy will be closed within months.' Ultimately, Gustoff withdrew his amendment later in the day, and the House voted in favor of the PBM reform bill with 75 votes to 15. Barker provided WHO 13 News with this updated statement after the bill passed: 'The abusive, anti-competitive practices of PBMs have created an epidemic of pharmacy closures and rising prescription drug prices nationwide. With the passage of SF383, Iowa will take a large step to catch back up with states across the country who have taken a leading role in reforming a broken system. This bill provides transparency in an opaque system, empowers patients to choose their healthcare provider, requires that the dollars in the system benefit patients and employers, and ensures that pharmacies can keep their doors open by reimbursing what it costs to dispense prescriptions to Iowans.' -State Representative Brett Barker, (R) District 51, Neveda, Maxwell, Huxley The Iowa Pharmacy Association praised the Iowa House for passing the bill. 'Leadership in the House to champion Senate File 383 across the finish line is so impactful to not only pharmacists across the state but ultimately the patients that pharmacists serve. This is a historic moment in Iowa to join other states that have passed meaningful PBM reform,' said IPA CEO Kate Gainer. Gainer announced she will be stepping down as CEO later this year. More information on that can be found here. Iowa Congressman Randy Feenstra confirms bid for Iowa governor Pharmacy Benefit Managers reform bill heads to the Governor Iowa Pharmacy Association CEO to step down after 'historic' reform bill was passed The Caitlin Clark Effect: About 3 in 10 US adults follow women's sports, new poll finds Iowa Senate advances carbon pipeline eminent domain legislation Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-05-2025
- Business
- Yahoo
Iowa Pharmacy Association CEO to step down after ‘historic' reform bill was passed
DES MOINES, Iowa — After two decades in the Iowa Pharmacy Association, CEO Kate Gainer is stepping down. 'Working for the IPA has brought so much meaning to my life, both professionally and personally,' she said. Gainer started working in the IPA in 2005 and was named the CEO in 2011. She was at the forefront of advocating for legislation supporting pharmacies across the state. On Monday, a PBM reform bill passed the Iowa legislature and is now headed to the Governor's desk. During this legislative session, Gainer has organized several meetings at the Capitol where IPA members and community members demonstrated their support for reform. The most recent was Monday morning, ahead of the House's debate on the bill. Her efforts led to the passing of what she calls a 'historic' reform bill. Gainer said she will mainly miss the people she created close relationships with over her 20 years. 'The highlight for me working for IPA isn't a singular piece of legislation or an achievement from our strategic plan, but it's truly the relationships that I've built with so many pharmacists across the state and it's the people that have meant the most and have made this work really, really rewarding,' she said. Gainer will stay in Iowa, but will take time to spend with her family before deciding what's next. Pharmacy Benefit Managers reform bill heads to the Governor Iowa Pharmacy Association CEO to step down after 'historic' reform bill was passed The Caitlin Clark Effect: About 3 in 10 US adults follow women's sports, new poll finds Iowa Senate advances carbon pipeline eminent domain legislation Marshalltown City Council moves mall project forward Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-05-2025
- Health
- Yahoo
Iowa House sends PBM reform bill to governor's desk
DES MOINES, Iowa — The Iowa House on Monday passed the pharmacy benefit manager (PBM) reform bill and sent it to the governor's desk. PBMs are entities that negotiate the prices for prescription drugs between pharmacies and insurance companies, handle reimbursements to pharmacies, and determines where a patient can get their medications from. Champions for the reform bill say that the current practices of PBMs are detrimental and have resulted in numerous pharmacies closing across the state. Golf tournament raises $30,000 for families of Iowa veterans and first responders in first swing The reform bill, SF 383, passed the House 75 to 15. It requires PBMs to reimburse pharmacies based on the National Average Drug Acquisition Cost for prescription drugs and to reimburse pharmacies with a professional dispensing fee. Following the passage of the bill, the Iowa Pharmacy Association released a statement thanking the Legislature for protecting Iowa pharmacies and their patients. We commend the Iowa House for recognizing the urgent need to address PBM middlemen abuses. This bill is a critical step toward protecting Iowa's local pharmacies and ensuring accountability for PBMs, whose practices have forced Iowa pharmacies to shutter their doors and countless Iowans to lose healthcare access. With states nationwide enacting similar reforms, we're grateful the House and Senate have paved the way for Governor Reynolds to sign this bill and safeguard Iowa's pharmacies and the patients they serve. Iowa Pharmacy Association CEO Kate Gainer The bill is now eligible to be signed into law by Governor Kim Reynolds. Iowa News: Forecast: Who will see rain this week? Iowa House sends PBM reform bill to governor's desk Congressman Randy Feenstra files paperwork hinting he may run for governor Pharmacy Benefit Manager reform bill to be debated Fire causes 'significant' damage to Raccoon River Valley Bike Trail bridge in Adel Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
12-05-2025
- Health
- Yahoo
Pharmacy Benefit Manager reform bill to be debated
DES MOINES, Iowa — As the end of the 2025 legislative session is near, the PBM reform bill is still waiting for its fate. Pharmacists across the state have championed a bill that would reform the practices of pharmacy benefit managers (PBMs), or the middlemen between pharmacies and insurance companies. PBMs determine the total drug costs for insurers, shape patients' access to medications, and determine how much pharmacies are paid. In 2024, 31 pharmacies in 22 counties closed in the state of Iowa, according to the Iowa Pharmacy Association (IPA), and an estimated 955,000 Iowans have been affected by these closures. These closures are largely the result of PBM practices, including not being reimbursed at fair rates. PBMs often pay pharmacies less money than it costs for the pharmacy to purchase drugs and distribute prescriptions. This was the case for pharmacies in Oskaloosa, Minden, Colfax, and Eagle Grove. Rob Sand announces run for Iowa governor The legislation proposed this session would require PBMs to reimburse pharmacies for their cost and enable patients to choose the pharmacy they want to receive care from. The bill is on the Monday debate schedule for the Iowa House of Representatives. An amendment to the bill was proposed by State Representative Bill Gustoff of District 40 on Monday morning. State Representative and pharmacist Brett Barker of District 51 opposes the amendment and said it's detrimental to pharmacies in Iowa. 'It guts the bill. It strikes the core provisions. It actually is a reimbursement increase on your smallest pharmacies, so it's something that absolutely does not help small pharmacies. It would be a step backwards from current law and I'm absolutely advocating against it,' he said. Over 100 pharmacists were at the State House Monday morning, speaking with lawmakers as they entered. Many were optimistic until they heard news about the amendment. Heidi Van Buren was one of them. She said PBM reform is necessary to keep her pharmacy open. 'I feel like I'm carrying a rock going into a sword fight,' she said. 'If I sign the current contract that [a PBM] has sent to us, my pharmacy will be closed within months.' Representative Gustoff did not immediately respond to a request for comment on the amendment. Both the original bill and the amended bill will be debated on Monday. Whichever is passed will head to Governor Kim Reynolds' desk. Congressman Randy Feenstra files paperwork hinting he may run for governor Pharmacy Benefit Manager reform bill to be debated Fire causes 'significant' damage to Raccoon River Valley Bike Trail bridge in Adel Rob Sand announces run for Iowa governor Before they name a 2028 nominee, Democrats will have to decide which state will weigh in first Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
