Federal Judge Blocks Enforcement of Iowa Pharmacy Benefit Manager Law

A federal judge has issued a temporary injunction blocking enforcement of key portions of Senate File 383 in Iowa, which regulates pharmacy benefit managers (PBMs) and prescription-drug reimbursement policies for some health plans, reports the Iowa Capital Dispatch. As written, the law previously required independent pharmacies to be reimbursed at the average national acquisition cost plus a $10.68 dispensing fee and restricted PBMs’ ability to steer patients to certain pharmacies. Although provisions not blocked by the court remain enforceable, this ruling pauses certain cost-driving mandates pending further litigation.