A federal judge has temporarily blocked portions of Iowa’s pharmacy benefit manager law, Senate File 383, ruling that several provisions likely conflict with federal law, the Des Moines Register reported July 22.
Here are three notes:
- The injunction prevents some of the law’s provisions, including the state-affiliated dispensing fee, requirements for PBMs to not favor certain pharmacies over others and language restricting cost-sharing differences for mail-order and retail pharmacies. However, other parts of the law remain in place, including rules on manufacturer rebate transparency, reimbursement parity for affiliated and non-affiliated pharmacies and quarterly reporting requirements.
- The ruling stems from a June 23 lawsuit seeking to halt the law, filed by a coalition of businesses and employer-provided healthcare plans, alleging it violates federal code and the First Amendment by restricting employers from favoring specific pharmacies for their workers.
- While the injunction is limited to the named plaintiffs, including the Iowa Bankers Benefit Plan and Iowa Spring Manufacturing, the judge said the state may still enforce the law against other parties that are not covered in the order.
