Several Iowa businesses and health plans are suing to block a new state law regulating pharmacy benefit managers, arguing it violates federal law and the Constitution, Iowa Capital Dispatch reported June 23.
The lawsuit, filed June 23 in the U.S. District Court for the Southern District of Iowa, challenges Senate File 383, a measure signed in early June by Gov. Kim Reynolds. The plaintiffs include the Iowa Association of Business and Industry, Des Moines Orthopaedic Surgeons PC, Iowa Springs Manufacturing & Sales Co., and health plans like the Iowa Bankers Benefit Plan and Iowa Laborers District Council Health and Welfare Fund.
While supporters said the provisions will help struggling pharmacies in many Iowa communities, the lawsuit argued the new law will “raise healthcare costs for businesses across the state — large and small — by tens of millions of dollars.”
Ms. Reynolds said in a statement to the Dispatch that the law would address several PBM practices that harm patients and small pharmacies, but said her administration will continue to conduct a review to assess the impacts of the legislation as it takes effect.
“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,” Ms. Reynolds said. “We will also be launching a reverse auction to ensure Iowa’s state health plan continues to keep costs as low as possible for the state and its employees.”
