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HF852 • 2026

A bill for an act relating to pharmacy benefits managers, pharmacies, and prescription drugs and including applicability provisions.(Formerly HSB 99 .)

A bill for an act relating to pharmacy benefits managers, pharmacies, and prescription drugs and including applicability provisions.(Formerly HSB 99 .)

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
COMMITTEE ON COMMERCE
Last action
2025-05-12
Official status
Withdrawn. H.J. 1140 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to pharmacy benefits managers, pharmacies, and prescription drugs and including applicability provisions.(Formerly HSB 99 .)

A bill for an act relating to pharmacy benefits managers, pharmacies, and prescription drugs and including applicability provisions.(Formerly HSB 99 .)

What This Bill Does

  • A bill for an act relating to pharmacy benefits managers, pharmacies, and prescription drugs and including applicability provisions.(Formerly HSB 99 .)

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-05-12 Iowa Legislature

    Withdrawn. H.J. 1140 .

  2. 2025-05-12 Iowa Legislature

    SF 383 substituted. H.J. 1119 .

  3. 2025-05-12 Iowa Legislature

    Amendment H-1291 adopted. H.J. 1119 .

  4. 2025-05-07 Iowa Legislature

    Amendment H-1291 filed. H.J. 1093 .

  5. 2025-04-16 Iowa Legislature

    Fiscal note .

  6. 2025-04-03 Iowa Legislature

    Placed on calendar under unfinished business. H.J. 894 .

  7. 2025-03-07 Iowa Legislature

    Introduced, placed on calendar. H.J. 562 .

Official Summary Text

A bill for an act relating to pharmacy benefits managers, pharmacies, and prescription drugs and including applicability provisions.(Formerly HSB 99 .)

Current Bill Text

Read the full stored bill text
House

File

852

-

Introduced

HOUSE

FILE

852

BY

COMMITTEE

ON

COMMERCE

(SUCCESSOR

TO

HSB

99)

A

BILL

FOR

An

Act

relating

to

pharmacy

benefits

managers,

pharmacies,

and

1

prescription

drugs

and

including

applicability

provisions.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

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852

Section

1.

Section

510B.1,

Code

2025,

is

amended

by

adding

1

the

following

new

subsections:

2

NEW

SUBSECTION

.

11A.

“Pass-through

pricing”

means

a

3

model

of

prescription

drug

pricing

in

which

payments

made

4

by

a

third-party

payor

to

a

pharmacy

benefits

manager

for

5

prescription

drugs

are

equivalent

to

the

payments

the

pharmacy

6

benefits

manager

makes

to

the

dispensing

pharmacy

or

dispensing

7

health

care

provider

for

the

prescription

drugs,

including

any

8

professional

dispensing

fee.

9

NEW

SUBSECTION

.

21A.

“Spread

pricing”

means

a

pharmacy

10

benefits

manager

charges

a

third-party

payor

more

for

11

prescription

drugs

dispensed

to

a

covered

person

than

the

12

amount

the

pharmacy

benefits

manager

reimburses

the

pharmacy

13

for

dispensing

the

prescription

drugs

to

a

covered

person.

14

Sec.

2.

Section

510B.4,

Code

2025,

is

amended

by

adding

the

15

following

new

subsection:

16

NEW

SUBSECTION

.

4.

A

pharmacy

benefits

manager,

health

17

carrier,

health

benefit

plan,

or

third-party

payor

shall

not

18

discriminate

against

a

pharmacy

or

a

pharmacist

with

respect

to

19

participation,

referral,

reimbursement

of

a

covered

service,

20

or

indemnification

if

a

pharmacist

is

acting

within

the

scope

21

of

the

pharmacist’s

license

and

the

pharmacy

is

operating

in

22

compliance

with

all

applicable

laws

and

rules.

23

Sec.

3.

NEW

SECTION

.

510B.4B

Prohibited

conduct

——

pharmacy

24

rights.

25

1.

A

pharmacy

benefits

manager

shall

not

do

any

of

the

26

following:

27

a.

Where

a

pharmacy

or

pharmacist

has

agreed

to

participate

28

in

a

covered

person’s

health

benefit

plan,

prohibit

or

limit

29

the

covered

person

from

selecting

a

pharmacy

or

pharmacist

of

30

the

covered

person’s

choice,

or

impose

a

monetary

advantage

31

or

penalty

that

would

affect

a

covered

person’s

choice.

A

32

monetary

advantage

or

penalty

includes

a

higher

copayment,

a

33

reduction

in

reimbursement

for

services,

or

promotion

of

one

34

participating

pharmacy

over

another.

35

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b.

Deny

a

pharmacy

or

pharmacist

the

right

to

participate

as

1

a

contract

provider

under

a

health

benefit

plan

if

the

pharmacy

2

or

pharmacist

agrees

to

provide

pharmacy

services

that

meet

3

the

terms

and

requirements

of

the

health

benefit

plan

and

the

4

pharmacy

or

pharmacist

agrees

to

the

terms

of

reimbursement

set

5

forth

by

the

third-party

payor.

6

c.

Impose

upon

a

pharmacy

or

pharmacist,

as

a

condition

7

of

participation

in

a

third-party

payor

network,

any

course

8

of

study,

accreditation,

certification,

or

credentialing

that

9

is

inconsistent

with,

more

stringent

than,

or

in

addition

to

10

state

requirements

for

licensure

or

certification,

and

the

11

administrative

rules

adopted

by

the

board

of

pharmacy.

12

d.

Unreasonably

designate

a

prescription

drug

as

a

13

specialty

drug

to

prevent

a

covered

person

from

accessing

14

the

prescription

drug,

or

limiting

a

covered

person’s

access

15

to

the

prescription

drug,

from

a

pharmacy

or

pharmacist

that

16

is

within

the

health

carrier’s

network.

A

covered

person

or

17

pharmacy

harmed

by

an

alleged

violation

of

this

paragraph

may

18

file

a

complaint

with

the

commissioner,

and

the

commissioner

19

shall,

in

consultation

with

the

board

of

pharmacy,

make

a

20

determination

as

to

whether

the

covered

prescription

drug

meets

21

the

definition

of

a

specialty

drug.

22

e.

Require

a

covered

person,

as

a

condition

of

payment

23

or

reimbursement,

to

purchase

pharmacy

services,

including

24

prescription

drugs,

exclusively

through

a

mail

order

pharmacy.

25

f.

Impose

upon

a

covered

person

a

copayment,

reimbursement

26

amount,

number

of

days

of

a

prescription

drug

supply

for

27

which

reimbursement

will

be

allowed,

or

any

other

payment

28

or

condition

relating

to

purchasing

pharmacy

services

from

29

a

pharmacy

that

is

more

costly

or

restrictive

than

would

be

30

imposed

upon

the

covered

person

if

such

pharmacy

services

were

31

purchased

from

a

mail

order

pharmacy,

or

any

other

pharmacy

32

that

can

provide

the

same

pharmacy

services

for

the

same

cost

33

and

copayment

as

a

mail

order

service.

34

2.

a.

If

a

third-party

payor

providing

reimbursement

to

35

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covered

persons

for

prescription

drugs

restricts

pharmacy

1

participation,

the

third-party

payor

shall

notify,

in

writing,

2

all

pharmacies

within

the

geographical

coverage

area

of

the

3

health

benefit

plan

restriction,

and

offer

the

pharmacies

4

the

opportunity

to

participate

in

the

health

benefit

plan

at

5

least

sixty

days

prior

to

the

effective

date

of

the

health

6

benefit

plan

restriction.

All

pharmacies

in

the

geographical

7

coverage

area

of

the

health

benefit

plan

shall

be

eligible

to

8

participate

under

identical

reimbursement

terms

for

providing

9

pharmacy

services

and

prescription

drugs.

10

b.

The

third-party

payor

shall

inform

covered

persons

of

11

the

names

and

locations

of

all

pharmacies

participating

in

12

the

health

benefit

plan

as

providers

of

pharmacy

services

and

13

prescription

drugs.

14

c.

A

participating

pharmacy

shall

be

entitled

to

announce

15

the

pharmacy’s

participation

in

the

health

benefit

plan

to

the

16

pharmacy’s

customers.

17

3.

The

commissioner

shall

not

certify

a

pharmacy

benefits

18

manager

or

license

an

insurance

producer

that

is

not

in

19

compliance

with

this

section.

20

4.

A

covered

person

or

pharmacy

injured

by

a

violation

21

of

this

section

may

maintain

a

cause

of

action

to

enjoin

the

22

continuation

of

the

violation.

23

5.

This

section

shall

not

apply

to

an

entity

that

owns

24

and

operates

the

entity’s

own

facility,

employs

or

contracts

25

with

physicians,

pharmacists,

nurses,

or

other

health

care

26

personnel,

and

that

dispenses

prescription

drugs

from

the

27

entity’s

pharmacy

to

the

entity’s

employees

and

dependents

28

enrolled

in

the

entity’s

health

benefit

plan,

except

that

29

this

section

shall

apply

to

an

entity

otherwise

excluded

that

30

contracts

with

an

outside

pharmacy

or

group

of

pharmacies

31

to

provide

prescription

drugs

and

services

to

the

entity’s

32

employees

and

dependents

enrolled

in

the

entity’s

health

33

benefit

plan.

34

Sec.

4.

Section

510B.8,

Code

2025,

is

amended

by

adding

the

35

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852

following

new

subsections:

1

NEW

SUBSECTION

.

3.

A

pharmacy

benefits

manager

shall

not

2

impose

different

cost-sharing

or

additional

fees

on

a

covered

3

person

based

on

the

pharmacy

at

which

the

covered

person

fills

4

a

prescription

drug

order.

5

NEW

SUBSECTION

.

4.

a.

A

covered

person’s

cost-sharing

6

for

a

prescription

drug

shall

be

calculated

at

the

point

of

7

sale

based

on

a

price

that

is

reduced

by

an

amount

equal

to

8

at

least

one

hundred

percent

of

all

rebates

that

have

been

9

received,

or

that

will

be

received,

by

the

health

carrier

or

a

10

pharmacy

benefits

manager

in

connection

with

the

dispensing

or

11

administration

of

the

prescription

drug.

12

b.

A

health

carrier

shall

not

be

precluded

from

decreasing

13

a

covered

person’s

cost-sharing

by

an

amount

greater

than

the

14

covered

person’s

cost-sharing

as

calculated

under

paragraph

15

“a”

.

16

NEW

SUBSECTION

.

5.

A

pharmacy

benefits

manager

shall

17

include

any

amount

paid

by

a

covered

person,

or

on

behalf

of

18

a

covered

person,

when

calculating

the

covered

person’s

total

19

contribution

toward

the

covered

person’s

cost-sharing.

20

NEW

SUBSECTION

.

6.

Any

amount

paid

by

a

covered

person

for

21

a

prescription

drug

shall

be

applied

to

any

deductible

imposed

22

on

the

covered

person

by

the

covered

person’s

health

benefit

23

plan

in

accordance

with

the

health

benefit

plan’s

coverage

24

documents.

25

Sec.

5.

Section

510B.8B,

Code

2025,

is

amended

to

read

as

26

follows:

27

510B.8B

Pharmacy

benefits

manager

affiliates

managers

——

28

reimbursement

reimbursements

.

29

1.

A

pharmacy

benefits

manager

shall

not

reimburse

any

30

pharmacy

located

in

the

state

in

an

amount

less

than

the

amount

31

that

the

pharmacy

benefits

manager

reimburses

a

pharmacy

32

benefits

manager

affiliate

for

dispensing

the

same

prescription

33

drug

as

dispensed

by

the

pharmacy.

The

reimbursement

amount

34

shall

be

calculated

on

a

per

unit

basis

based

on

the

same

35

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generic

product

identifier

or

generic

code

number.

1

2.

A

pharmacy

benefits

manager

shall

not

reimburse

any

2

pharmacy

located

in

the

state

in

an

amount

less

than

the

most

3

recently

published

national

average

drug

acquisition

cost

or

4

the

Iowa

average

acquisition

cost

for

the

prescription

drug

5

on

the

date

that

the

prescription

drug

is

administered

or

6

dispensed.

If

the

most

recently

published

national

average

7

drug

acquisition

cost

and

the

Iowa

average

acquisition

cost

8

for

the

prescription

drug

are

unavailable

on

the

date

that

the

9

prescription

drug

is

administered

or

dispensed,

a

pharmacy

10

benefits

manager

shall

not

reimburse

any

pharmacy

located

in

11

the

state

in

an

amount

less

than

the

wholesale

acquisition

cost

12

for

the

prescription

drug

on

the

date

that

the

prescription

13

drug

is

administered

or

dispensed.

14

3.

In

addition

to

the

reimbursement

required

under

15

subsection

2,

a

pharmacy

benefits

manager

shall

reimburse

the

16

pharmacy

or

pharmacist

a

professional

dispensing

fee

in

an

17

amount

not

less

than

the

pharmacy

dispensing

fee

published

in

18

the

Iowa

Medicaid

enterprise

provider

fee

schedule

on

the

date

19

that

the

prescription

drug

is

administered

or

dispensed.

20

4.

A

pharmacy

may

decline

to

dispense

a

prescription

drug

21

to

a

covered

person

if

the

requirements

of

subsections

2

and

3

22

cannot

be

met.

23

Sec.

6.

NEW

SECTION

.

510B.8D

Pharmacy

benefits

manager

24

contracts

——

spread

pricing.

25

1.

All

contracts

executed,

amended,

adjusted,

or

renewed

26

on

or

after

July

1,

2025,

that

apply

to

prescription

drug

27

benefits

on

or

after

January

1,

2026,

between

a

pharmacy

28

benefits

manager

and

a

third-party

payor,

or

between

a

person

29

and

a

third-party

payor,

shall

include

all

of

the

following

30

requirements:

31

a.

The

pharmacy

benefits

manager

shall

use

pass-through

32

pricing

unless

paragraph

“b”

applies.

33

b.

The

pharmacy

benefits

manager

may

use

direct

or

indirect

34

spread

pricing

only

if

the

difference

between

the

amount

the

35

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third-party

payor

pays

the

pharmacy

benefits

manager

for

a

1

prescription

drug

and

the

amount

the

pharmacy

benefits

manager

2

reimburses

the

dispensing

pharmacy

or

dispensing

health

care

3

provider

for

the

prescription

drug

is

passed

through

by

the

4

pharmacy

benefits

manager

to

the

person

contracted

to

receive

5

third-party

payor

services.

6

c.

Payments

received

by

a

pharmacy

benefits

manager

for

7

services

provided

by

the

pharmacy

benefits

manager

to

a

8

third-party

payor

or

to

a

pharmacy

shall

be

used

or

distributed

9

pursuant

to

the

pharmacy

benefits

manager’s

contract

with

10

the

third-party

payor

or

with

the

pharmacy,

or

as

otherwise

11

required

by

law.

12

2.

Unless

otherwise

prohibited

by

law,

subsection

1

shall

13

supersede

any

contractual

terms

to

the

contrary

in

any

contract

14

executed,

amended,

adjusted,

or

renewed

on

or

after

July

1,

15

2025,

that

applies

to

prescription

drug

benefits

on

or

after

16

January

1,

2026,

between

a

pharmacy

benefits

manager

and

a

17

third-party

payor,

or

between

a

person

and

a

third-party

payor.

18

Sec.

7.

NEW

SECTION

.

510B.8E

Appeals

and

disputes.

19

1.

A

pharmacy

benefits

manager

shall

provide

a

reasonable

20

process

to

allow

a

pharmacy

to

appeal

a

reimbursement

rate

for

21

a

specific

prescription

drug

for

any

of

the

following

reasons:

22

a.

The

pharmacy

benefits

manager

violated

section

510B.8A.

23

b.

The

reimbursement

rate

is

below

the

pharmacy

acquisition

24

cost.

25

2.

The

appeals

process

must

include

all

of

the

following:

26

a.

A

dedicated

telephone

number

at

which

a

pharmacy

may

27

contact

the

pharmacy

benefits

manager

and

speak

directly

with

28

an

individual

who

is

involved

with

the

appeals

process.

29

b.

A

dedicated

electronic

mail

address

or

internet

site

for

30

the

purpose

of

submitting

an

appeal

directly

to

the

pharmacy

31

benefits

manager.

32

c.

A

period

of

no

less

than

thirty

business

days

after

the

33

date

of

a

pharmacy’s

initial

submission

of

a

clean

claim

during

34

which

the

pharmacy

may

initiate

an

appeal.

35

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3.

The

pharmacy

benefits

manger

shall

respond

to

an

appeal

1

within

seven

business

days

after

the

date

on

which

the

pharmacy

2

benefits

manager

receives

the

appeal.

3

a.

If

the

pharmacy

benefits

manager

grants

a

pharmacy’s

4

appeal,

the

pharmacy

benefits

manager

shall

do

all

of

the

5

following:

6

(1)

Adjust

the

reimbursement

rate

of

the

prescription

drug

7

that

is

the

subject

of

the

appeal

and

provide

the

national

drug

8

code

number

that

the

adjustment

is

based

on

to

the

appealing

9

pharmacy.

10

(2)

Reverse

and

resubmit

the

claim

that

is

the

subject

of

11

the

appeal.

12

(3)

Make

the

adjustment

pursuant

to

subparagraph

(1)

13

applicable

to

all

of

the

following:

14

(a)

Each

pharmacy

that

is

under

common

ownership

with

the

15

pharmacy

that

submitted

the

appeal.

16

(b)

Each

pharmacy

in

the

state

that

demonstrates

the

17

inability

to

purchase

the

prescription

drug

for

less

than

the

18

established

reimbursement

rate.

19

b.

If

the

pharmacy

benefits

manager

denies

a

pharmacy’s

20

appeal,

the

pharmacy

benefits

manager

shall

do

all

of

the

21

following:

22

(1)

Provide

the

appealing

pharmacy

the

national

drug

23

code

number

and

the

name

of

a

wholesale

distributor

licensed

24

pursuant

to

section

155A.17

from

which

the

pharmacy

can

obtain

25

the

prescription

drug

at

or

below

the

reimbursement

rate.

26

(2)

If

the

prescription

drug

identified

by

the

national

27

drug

code

number

provided

by

the

pharmacy

benefits

manager

28

pursuant

to

subparagraph

(1)

is

not

available

below

the

29

pharmacy

acquisition

cost

from

the

wholesale

distributor

from

30

whom

the

pharmacy

purchases

the

majority

of

its

prescription

31

drugs

for

resale,

the

pharmacy

benefits

manager

shall

adjust

32

the

reimbursement

rate

above

the

appealing

pharmacy’s

pharmacy

33

acquisition

cost,

and

reverse

and

resubmit

each

claim

affected

34

by

the

pharmacy’s

inability

to

procure

the

prescription

drug

35

-7-

LSB

1492HV

(1)

91

nls/ko

7/

10

H.F.

852

at

a

cost

that

is

equal

to

or

less

than

the

previously

appealed

1

reimbursement

rate.

2

Sec.

8.

APPLICABILITY.

This

Act

applies

to

pharmacy

3

benefits

managers

that

manage

a

prescription

drug

benefit

in

4

the

state

on

or

after

July

1,

2025.

5

EXPLANATION

6

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

7

the

explanation’s

substance

by

the

members

of

the

general

assembly.

8

This

bill

relates

to

pharmacy

benefits

managers

(PBMs),

9

pharmacies,

and

prescription

drugs.

10

The

bill

prohibits

a

PBM

from

discriminating

against

11

a

pharmacy

or

a

pharmacist

with

regards

to

participation,

12

referral,

reimbursement

of

a

covered

service,

or

13

indemnification

if

a

pharmacist

acts

within

the

scope

of

14

the

pharmacist’s

license

and

the

pharmacy

is

operating

in

15

accordance

with

all

applicable

laws

and

rules.

16

Under

the

bill,

where

a

pharmacy

or

pharmacist

has

agreed

17

to

participate

in

a

covered

person’s

(person’s)

health

benefit

18

plan

(plan),

a

PBM

shall

not

prohibit

or

limit

the

person

from

19

selecting

a

pharmacy

or

pharmacist

of

their

choice,

or

impose

20

a

monetary

advantage

or

penalty

as

described

in

the

bill.

21

A

PBM

shall

not

deny

a

pharmacy

or

pharmacist

the

right

to

22

participate

as

a

contract

provider

under

a

plan

if

the

pharmacy

23

or

pharmacist

agrees

to

the

terms

and

requirements

of

the

plan

24

and

the

terms

of

reimbursement.

A

PBM

shall

not

impose

upon

25

a

pharmacy

or

pharmacist,

as

a

condition

of

participation

in

26

a

network,

any

course

of

study,

accreditation,

certification,

27

or

credentialing

different

than

state

requirements

and

rules

28

of

the

board

of

pharmacy.

A

PBM

shall

not

unreasonably

29

designate

a

prescription

drug

(prescription)

as

a

specialty

30

drug

to

prevent

a

person

from

accessing

the

prescription

or

to

31

limit

a

person’s

access

to

the

prescription

from

a

pharmacy

32

or

pharmacist

that

is

within

the

person’s

plan’s

network.

33

A

person

or

pharmacy

harmed

by

such

a

violation

may

file

a

34

complaint.

A

PBM

shall

not

require

a

person,

as

a

condition

35

-8-

LSB

1492HV

(1)

91

nls/ko

8/

10

H.F.

852

of

payment

or

reimbursement,

to

purchase

pharmacy

services

1

exclusively

through

a

mail

order

pharmacy.

A

PBM

shall

not

2

impose

upon

a

person

any

payment

or

condition

to

purchasing

3

pharmacy

services

that

is

more

costly

or

restrictive

than

if

4

such

services

were

purchased

from

a

mail

order

pharmacy,

or

any

5

other

pharmacy.

6

If

a

third-party

payor

providing

reimbursement

to

persons

7

for

prescriptions

restricts

pharmacy

participation,

the

8

third-party

payor

shall

notify,

in

writing,

all

pharmacies

9

within

the

geographical

coverage

area

of

the

plan,

and

offer

10

the

opportunity

to

participate

in

the

plan

at

least

60

days

11

prior

to

the

effective

date

of

the

restriction.

All

pharmacies

12

in

the

geographical

coverage

area

are

eligible

to

participate

13

under

identical

reimbursement

terms.

The

third-party

payor

14

shall

inform

persons

of

the

names

and

locations

of

all

15

pharmacies

participating

in

the

plan.

A

participating

pharmacy

16

shall

be

entitled

to

announce

the

pharmacy’s

participation

to

17

the

pharmacy’s

customers.

The

commissioner

shall

not

certify

18

any

PBM

or

license

an

insurance

producer

not

in

compliance

with

19

the

bill.

20

A

PBM

shall

not

impose

different

cost-sharing

or

additional

21

fees

on

a

person

based

on

the

pharmacy

at

which

the

person

22

fills

a

prescription

order.

A

person’s

cost-sharing

for

a

23

prescription

shall

be

calculated

at

the

point

of

sale

based

24

on

a

price

that

is

reduced

by

an

amount

equal

to

at

least

100

25

percent

of

all

rebates

that

have

been

received,

or

will

be

26

received,

by

the

health

carrier

or

a

PBM

in

connection

with

27

the

dispensing

or

administration

of

the

prescription.

A

PBM

28

shall

include

any

amount

paid

by

a

person,

or

on

behalf

of

a

29

person,

when

calculating

the

person’s

total

contribution

toward

30

the

person’s

cost-sharing.

Any

amount

paid

by

a

person

for

a

31

prescription

shall

be

applied

to

any

deductible

imposed

on

the

32

person

by

the

person’s

plan

in

accordance

with

the

coverage

33

documents.

34

The

bill

prohibits

a

PBM

from

reimbursing

a

pharmacy

in

an

35

-9-

LSB

1492HV

(1)

91

nls/ko

9/

10

H.F.

852

amount

less

than

the

national

average

drug

acquisition

cost

or

1

the

Iowa

average

acquisition

cost

or,

if

neither

is

available,

2

the

wholesale

acquisition

cost,

for

a

prescription

on

the

date

3

that

the

prescription

is

administered

or

dispensed.

A

PBM

4

also

must

reimburse

the

pharmacy

or

pharmacist

a

professional

5

dispensing

fee

in

an

amount

not

less

than

the

pharmacy

6

dispensing

fee

published

in

the

Iowa

Medicaid

enterprise

7

provider

fee

schedule

on

the

date

that

the

prescription

8

is

administered

or

dispensed.

The

bill

permits

a

pharmacy

9

to

decline

to

dispense

a

prescription

to

a

person

if

the

10

pharmacy

will

be

reimbursed

less

for

the

prescription

than

the

11

pharmacy’s

acquisition

cost.

12

The

bill

requires

all

contracts

executed,

amended,

adjusted,

13

or

renewed

on

or

after

July

1,

2025,

that

are

applicable

14

to

prescription

drug

benefits

on

or

after

January

1,

2026,

15

between

a

PBM

and

a

third-party

payor,

or

between

a

person

16

and

a

third-party

payor,

to

use

a

pass-through

pricing

model;

17

to

exclude

terms

that

allow

for

spread

pricing

unless

the

18

entire

amount

of

the

difference

caused

by

spread

pricing

is

19

passed

through

by

the

PBM;

and

to

ensure

that

payments

received

20

in

relation

to

providing

services

to

a

third-party

payor

or

21

a

pharmacy

are

used

or

distributed

pursuant

to

the

PBM’s

22

contract

with

the

third-party

payor

or

with

the

pharmacy,

or

23

as

otherwise

required.

“Pass-through

pricing”

and

“spread

24

pricing”

are

defined

in

the

bill.

25

The

bill

requires

a

PBM

to

provide

a

process

for

pharmacies

26

to

appeal

a

reimbursement

rate

for

a

specific

prescription.

27

The

appeal

process

is

detailed

in

the

bill.

28

The

bill

applies

to

pharmacy

benefits

managers

that

manage

29

a

prescription

drug

benefit

in

the

state

on

or

after

July

1,

30

2025.

31

-10-

LSB

1492HV

(1)

91

nls/ko

10/

10