Iowa Gov. Kim Reynolds has signed Senate Bill 383 into law, imposing new regulations on pharmacy benefit managers.
Here are five notes:
- The law aims to protect independent and rural pharmacies from what some have referred to as anticompetitive PBM practices following the closure of 34 rural Iowa pharmacies in 2024, according to a June 11 letter from the governor’s office.
- The legislation also prohibits PBMs from using reimbursement rates, cost-sharing schemes or penalties that could favor certain pharmacies, especially large chains.
- PBMs will now be required to reimburse pharmacies based on average state or national drug prices instead of negotiated rates.
- The bill has drawn mixed reactions, The Iowa Dispatch reported June 11. While the Iowa Pharmacy Association called the legislation a win for patients and local providers, the Iowa Association of Business and Industry warned it could add $340 million in private-sector health costs.
- Iowa joins more than 30 other states — including Texas, Georgia, Indiana and Montana — that have adopted PBM oversight measures in 2025.
