Protecting Employer-Provided Health Care Benefits in Iowa

The Iowa Association of Business and Industry (ABI) is actively engaged in protecting employers’ ability to offer affordable, flexible, and high-quality health care benefits for their employees.

ABI is leading a legal challenge to Senate File 383, Iowa’s Pharmacy Benefit Manager (PBM) law, which imposes costly and restrictive mandates on employer-sponsored health plans.

On July 21, 2025, a federal court granted ABI’s request for a preliminary injunction, blocking enforcement of key parts of the law as applied to ERISA-governed health plans administered or sponsored by ABI members.

This preliminary injunction is a critical step in preventing the law’s immediate impact while litigation continues.

Click here for a fact sheet on SF 383 and what it means for Iowans.

Litigation Milestones

Here's a glimpse at the progression of ABI et al v. Ommen:

• June 24: Complaint filed
• June 26: Motion for preliminary injunction and temporary restraining order submitted
• June 30: Court issues temporary restraining order (TRO) for ABI Members and Plaintiffs ONLY
• July 21: Preliminary injunction granted for ABI Members and Plaintiffs ONLY
• August 12: State files injuction appeal with 8th circuit
• October: Amicus briefs filed by independent pharmacy organizations supporting the state 
• October: Wellmark files a parallel lawsuit seeking similar injunctive relief and injunction is granted
• November 14: A third lawsuit is filed by United Health Care and OptumRx
• December 8: Briefs are due

Media Coverage

Stay informed with the latest news and analysis on ABI’s legal challenge to SF 383 and its impact on Iowa employers:

• Guest column: Why ABI is challenging Iowa’s pharmacy law
• A third lawsuit challenges Iowa's new law on pharmacy benefit managers - Iowa Capital Dispatch
• Federal judge grants preliminary injunction protecting Wellmark from enforcement of parts of Senate File 383
• Iowa’s new prescription drug law partially halted by federal judge - The Gazette
• Judge blocks parts of Iowa's pharmacy benefit manager law. What it means for prescriptions - Des Moines Register
• Federal judge halts Iowa PBM law amid free speech lawsuit - We Are Iowa

Press Inquiries

Members of the media seeking comment or additional information about ABI’s legal challenge to SF 383 are encouraged to contact:

Kelsey O’Connor
Marketing and Communications Director
Iowa Association of Business and Industry
Email: koconnor@iowaabi.org
Phone: 515-235-0571

We remain committed to protecting your ability to deliver health care that works for your business and your workforce.