Pharmacy Benefits Management Bill Remains Under Consideration - Threatens Huge Cost Increases to Employee Health Plans

March 17, 2022

Rep. Brian Best and Sen. Mike Klimesh are preparing a comprehensive amendment to a bill that makes changes to the role of pharmacy benefit managers in Iowa. Health insurance providers use pharmacy benefit managers to control the cost of prescription drugs in health care plans they provide to employers for their employees.

ABI has registered against the bill (SF 2231/HF 2384) as introduced because many of the cost controls currently used would be eliminated. Proponents argue that some changes need to be made to support independent and rural pharmacies. The most costly of the changes in the current legislation does not serve that purpose, but rather benefits out-of-state pharmaceutical manufacturers and market-dominant pharmacies. For an idea of the costs being considered, it is estimated that the original bill language could cost private sector health plans as much as $175 per covered person per year.

ABI members will need to be on high alert next week as the comprehensive amendment is released and a call to action may be required. Members can learn more about this issue on ABI’s legislative update on Zoom this Friday at 8:00 am or by contacting JD Davis.

  • ABI Position: Against
  • Status: Alive