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The Gruenhagen Gazette: Bill restricts PBMs to lower prescription costs
by Kerry Gruenhagen, Iowa Senate District 4 · Op-Ed · May 07, 2025
May 2nd marked the final scheduled day of the 2025 legislative session, but lawmakers are heading into overtime to finalize budget agreements and address remaining issues.
The Senate met Monday and Tuesday to advance key bills, either sending them to the governor’s desk for signature or to the House for consideration upon its return.
One of the bills passed, House File 835, focuses on supporting students with seizure disorders.
The legislation mandates that each school have at least one staff member trained to administer or assist with seizure rescue medication.
This measure ensures swift, appropriate response during medical emergencies, reduces the risk of injury, and offers peace of mind to students, parents, and school personnel.
By proactively addressing medical needs, this bill strengthens the safety net for students living with epilepsy and other seizure conditions.
The Senate also passed Senate File 639, which establishes a business court in Iowa to handle complex commercial litigation.
Iowa’s growth is driven in large part by homegrown businesses, and more companies are relocating from high-tax, highly regulated states like Illinois to pro-growth environments like Iowa.
By creating a specialized court for business disputes, this legislation aims to streamline legal processes and boost investor confidence.
A business-focused legal system, combined with Iowa’s strong economic policies, positions the state as an attractive destination for entrepreneurs and companies of all sizes.
Senate File 383, another key bill passed last week, advances pharmacy benefit manager (PBM) reform.
Building on previous transparency measures, SF 383 introduces stronger patient protections and cost-saving changes that will especially benefit rural communities.
The bill prohibits PBMs from limiting patients’ pharmacy choices, classifying medications as “specialty” to restrict access, or mandating the use of mail-order pharmacies.
It also requires PBMs to pass 100% of manufacturer rebates to health carriers or plan sponsors, helping to lower premiums.
Another significant reform in SF 383 addresses unfair reimbursement practices that have caused local pharmacies to operate at a loss.
The legislation sets a minimum dispensing fee for retail pharmacies and establishes a streamlined appeal process for disputes with PBMs.
These reforms align Iowa with many other states that have taken action to rein in PBM practices, support consumer choice, and preserve access to pharmacies, especially in underserved areas.
SF 383 brings meaningful transparency and fairness to a complex part of the health care system.
As always, if you have any questions or concerns, feel free to reach out as the legislative session starts coming to a close.
To contact Senator Gruenhagen during the week, call the Senate Switchboard at 515-281-3371. E-mail him at kerry.gruenhagen@legis.iowa.gov. Gruenhagen serves on the following committees: Government Oversight Committee; Commerce; Education; Technology; Transportation; and Ways and Means.
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