Legislation to regulate PBMs passes in Iowa

The Iowa General Assembly unanimously passed legislation that would regulate PBMs, while the Texas Senate unanimously passed the first in a series of bills calling for transparency in contracts between the state of Texas and PBMs. In Iowa, bill S.F. 512 requires PBMs to be certified as third-party administrators and to disclose any conflict-of-interest issues. It also prohibits PBMs from substituting a medication unless the substitution is made for medical reasons that benefit the beneficiary or result in financial savings to the employer. The legislation also give the insurance commissioner the ability to adopt rules regarding timely payment of pharmacy claims and establish an adjudication process for complaints and disputes between PBMs and pharmacies.

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