Judge Blocks Parts of Iowa PBM Law in Wellmark Lawsuit
The Wellmark Blue Cross-Blue Shield lawsuit is the second legal challenge to Iowa's 2025 law imposing new regulations on pharmacy benefit managers (PBMs).
Senate Subcommittee Hearing
Dozens of pharmacists, students, and pharmacy owners attended a Senate subcommittee meeting in February to discuss the proposed bill. Public comments were heard by Annette Sweeney, Mike Klimesh, and Sarah Trone Garriott.
Photo by Robin Opsahl/Iowa Capital Dispatch
Temporary Injunction on PBM Law Enforcement
District Judge Stephanie Rose issued a temporary injunction on Wednesday in response to a lawsuit filed earlier this month by Iowa’s largest health insurer, Wellmark Blue Cross-Blue Shield, against the state insurance commissioner.
The injunction temporarily blocks enforcement of Senate File 383, the legislation passed in June that regulates certain business practices of PBMs, which mediate prescription drug costs between manufacturers, insurers, and pharmacies.
Key Provisions of the Law
- Limits PBMs' ability to set cost-sharing rates, fees, or financial incentives aimed at directing patients to specific pharmacies.
- Requires independent pharmacies to be reimbursed at the average national acquisition cost of a drug plus a $10.68 dispensing fee.
The law has received strong support from advocates and owners of small and rural pharmacies.
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