By Steve Ditto on Linkedin
What the heck is going on in Iowa? They finally pass a PBM reform bill—and a business group is suing to stop it? Someone’s been drinking the ethanol again.
The lawsuit against Senate File 383 claims the law will raise prices and limit consumer choice.
But here’s what the law actually does:
• Bans spread pricing
• Bans steering to PBM-owned pharmacies
• Requires fair reimbursement to local pharmacies
• Mandates 100% rebate pass-through to the plan
In other words—it shuts down the PBM games.
The claim that this hurts consumers? Total fiction.
The law protects local pharmacies, restores patient choice, and makes pricing transparent.
Plans can still:
✅ Work with pharmacy-friendly PBMs like MedOne
✅ Use clinically-driven formularies and benefit designs
✅ Guide members to lower-cost options
✅ Fulfill their fiduciary duty to plan participants
PBM reform isn’t radical. It’s responsible.
Governor Kim Reynolds just showed the rest of the country how to get it done.
Go Hawkeyes (and please go put a lock on that ethanol supply)!
