Latest news with #SenateFile383
Yahoo
2 days ago
- Business
- Yahoo
Iowa Gov. Reynolds signs bill to reform pharmacy benefit managers
DES MOINES, Iowa (KCAU) — Iowa Gov. Kim Reynolds signed a bill Wednesday aimed at bringing changes to pharmacy benefit managers, also known as PBMs. The legislation, Senate File 383, aims to help prevent more independent and rural pharmacies from closing their doors in the Hawkeye State. PBMs are the middlemen between health insurance companies and pharmacies. Whenever you fill a prescription, the PBM determines how much the pharmacy actually gets paid for dispensing your medication. Iowa governor rejects GOP bill to increase regulations of Summit's carbon dioxide pipeline In recent years, that amount has sometimes been less than what it costs the pharmacy to fill a prescription, forcing them to either refuse the fill, or take a financial loss. Senate File 383 would attempt to prevent that by adding requirements for how much pharmacies must be reimbursed for filling medications, to ensure they get paid a fair price. It also adds other patient protections, like preventing PBMs from hitting you with a monetary penalty if you choose a non-preferred pharmacy, or requiring you to use a mail-order pharmacy service to use your insurance coverage. As of Wednesday, a total of 32 states have passed similar legislation, according to the Iowa Governor's Office. Opponents of the measure have argued the bill would increase health insurance premiums, but supporters maintain that in states that have previously passed similar legislation, that has not come to pass. Governor Reynolds released a statement Wednesday explaining her reasoning for signing the bill. In part, it says, 'The new bill takes steps toward addressing these challenges by targeting PBM practices that harm both patients and independent pharmacies. Local pharmacies, especially in rural areas, are vital to community health and local hospitals but are being driven out by opaque, one-sided contracts.' You can read the governor's full statement here. The Iowa Pharmacy Association applauded the bill's passage Wednesday. CEO Kate Gainer said, 'Governor Reynolds' leadership and the Iowa Legislature's bipartisan support of SF 383 sends a powerful message that the health of Iowa communities comes first. For too long, PBMs have put profits over patients, contributing to the closure of more than 200 pharmacies in Iowa since 2014. This law gives us the tools to level the playing field and protect access to care, especially in rural areas.' Story continues below Top Story: Recent incident at Sac County Jail highlights need for new facility Lights & Sirens: Suspect shot at during pursuit in stolen vehicle, Dakota Co Sheriff says Sports: West Sioux boys soccer wins first-ever IHSAA State title with 2-1 OT win Weather: Get the latest weather forecast here The Iowa Association of Business and Industry, however, opposed the bill's signing, releasing a statement saying, 'ABI is disappointed in today's action. ABI testified at every turn in favor of legislation that would support small independent pharmacies in Iowa. The bill that the Governor signed today is not that. Senate File 383 includes expensive, unneeded provisions that are going to drive up the costs of pharmacy services in Iowa without any discernable improvement in patient care. Iowans – including businesses and employees – will bear these costs at the pharmacy counter and in the structure of their health care plans. This is an additional headwind in an already challenging business environment. Now law, ABI will take every opportunity to mitigate the increased costs on our members and their team members throughout Iowa.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Business
- Yahoo
Reynolds makes ‘difficult decision' to sign bill on pharmacy benefit managers
Pharmacists who advocated for legislation setting regulations on pharmacy benefit managers celebrated from the Iowa House gallery as the chamber sent the bill to Gov. Kim Reynolds' desk May 12, 2025. (Photo by Robin Opsahl/Iowa Capital Dispatch) Calling it a 'difficult decision,' Gov. Kim Reynolds signed legislation Wednesday that's intended to help keep rural pharmacies in business but could also lead to higher drug costs for Iowans. At the urging of the state's pharmacists, the Iowa Legislature approved the measure earlier this year. Senate File 383 imposes restrictions and regulations on pharmacy benefit managers, or PBMs, that negotiate prescription drug prices between manufacturers, health insurance companies and pharmacies. The law limits PBMs' use of strategies that favor a specific pharmacy to fill a prescription — such as cost-sharing rates, fees, and other financial penalties or incentives. The legislation would also require pharmacies to be reimbursed at the average state or national price for a drug. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Supporters have claimed the law is needed to combat 'anti-competitive' practices by PBMs that they say give an advantage to mail-order prescription refills and larger pharmacy chains that have greater purchasing power. In signing the bill, Reynolds said that while PBMs have helped negotiate drug prices and access for millions of Americans, consolidation has led to only three major PBMs controlling 80% of the market, giving them 'outsized power' in determining what patients pay for their medications. 'But this bill does not signify an end,' she said. 'The complexity and lack of verifiable data made signing this bill a difficult decision and my administration will closely monitor implementation to mitigate and ensure that any unintended consequences for private employers are addressed.' Reynolds vetoes $1.5 million for UNI tuition program A Legislative Services Agency analysis found the bill could result in higher costs and co-pays for the state's health insurance program. The Iowa Association of Business and Industry warned it could result in an additional $340 million in costs for private-sector health insurance plans and add $169 annually to the average insured Iowan's pharmaceutical expenses. Earlier this year, Rep. Jeff Cooling, D-Cedar Rapids, warned that while the bill may initially increase revenue for smaller pharmacies, the added cost for consumers and their employers will give Iowans even more incentive to fill their prescriptions at a lower cost through larger pharmacies. More bill actions See a full list of the bills signed or vetoed Wednesday by Gov. Kim Reynolds here. The Iowa Pharmacy Association said the new law 'marks a major victory for Iowa patients, independent and community pharmacies, and healthcare providers across the state' by ensuring greater oversight of PBMs. 'For too long, PBMs have put profits over patients, contributing to the closure of more than 200 pharmacies in Iowa since 2014,' said Kate Gainer, CEO of the Iowa Pharmacy Association. 'This law gives us the tools to level the playing field and protect access to care, especially in rural areas.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
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.
