Iowa Governor Signs Law to Tighten PBM Oversight

Gov. Kim Reynolds (R) recently signed a law that restricts PBMs from steering patients to preferred pharmacies and bans the use of mandatory mail order provisions. The legislation requires PBMs to reimburse independent pharmacies at the same rate as PBMs pay their affiliated pharmacies and to pay higher dispensing fees for prescriptions.

The governor included a signing message which cites vertical integration, one-sided contracts, and pharmacy closures among the reasons for choosing to sign the measure into law. The governor also indicated she will pursue the use of a “reverse auction” when PBMs bid on the state employee business this summer.