DES MOINES, Iowa — A coalition of business organizations has initiated legal action just days before a controversial state law regulating pharmacy benefit managers is set to take effect. The lawsuit, brought forth by the Iowa Association of Business and Industry, the Iowa Bankers Benefit Plan, the Iowa Laborers District Council Health and Welfare Fund, Des Moines Orthopaedic Surgeons PC, and Iowa Spring Manufacturing & Sales Co., seeks to block the implementation of the new law.
The legislation, known as Senate File 383, was passed during this year’s legislative session and aims to reform practices surrounding pharmacy benefit managers, entities that serve as intermediaries among drug manufacturers, pharmacies, and health insurance providers. One of the law’s key provisions mandates a minimum reimbursement price for pharmacists filling prescriptions, as well as a standard fee of $10.68 for each drug dispensed.
Pharmacists had raised concerns to lawmakers about being compensated at rates lower than their costs of dispensing medications, indicating that such practices could threaten the viability of smaller pharmacies and limit choices for Iowa residents.
In their legal filing, the plaintiffs argue that the law infringes on First Amendment rights by prohibiting employers from steering employees toward specific pharmacies. Additionally, they contend that the state law conflicts with the federal Employee Retirement Income Security Act, which governs employee health plans.
The business groups are requesting a temporary restraining order to halt the law’s enforcement until the lawsuit can be evaluated in court. If granted, this order would prevent the law from going into effect on July 1, allowing for further legal consideration of its implications.
As the legal battle unfolds, the outcome could have significant ramifications for pharmacy operations, patient access to medications, and the broader health care landscape in Iowa. Stakeholders are closely monitoring developments as the July 1 deadline approaches.
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