(Des Moines) The Iowa Senate passed Senate File 383 by a 36-14 vote, setting new regulations on Pharmacy Benefit Managers (PBMs) to help rural pharmacies and lower drug costs. PBMs act as middlemen between drug makers, insurers, and pharmacies. The bill ensures pharmacies are reimbursed at fairer rates and bans PBM practices that steer patients toward certain pharmacies.
Sen. Tom Shipley called the bill a win for rural Iowa, where many small pharmacies have closed due to PBM tactics.
Sen. Mike Klimesh, who managed the bill, said it boosts transparency and access, especially in areas where local pharmacies are disappearing. Over 150 Iowa pharmacies have shut down in the last decade, including 31 in 2024.
Democrat Sen. Sarah Trone Garriott supported regulation but warned the bill could raise insurance premiums. Her amendment, aiming to offset consumer costs, failed, while Klimesh’s was adopted. The bill now moves to the House.
