US EditionBusiness Groups Sue over Iowa's New Law Regulating Pharmacy Benefit Managers
- On June 23, 2025, a group consisting of Iowa businesses and several employer-sponsored health plans initiated legal action in Des Moines aiming to prevent the implementation of a new state law regulating pharmacy benefit managers, which is set to take effect on July 1.
- The lawsuit contests Senate File 383, enacted on May 12 and signed into law on June 11, arguing that the legislation infringes on free speech rights by limiting employer pharmacy endorsements and conflicts with federal regulations under ERISA.
- Senate File 383 seeks to prevent the closure of pharmacies by mandating that pharmacy benefit managers pay pharmacies based on the national average cost for acquiring drugs and guarantee a minimum dispensing fee of $10.68 to support smaller, local pharmacies.
- Opponents argue the law will raise health care costs by an estimated $300 million annually and disrupt prescription drug coverage, while supporters claim similar laws elsewhere have not increased costs.
- The lawsuit aims to temporarily block the law’s implementation, emphasizing the potential economic strain on Iowa residents and businesses amid ongoing discussions about maintaining pharmacy operations while managing cost effects.
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Louisiana AG announces lawsuits against CVS
BATON ROUGE, La. (Louisiana First) — Gov. Jeff Landry and Attorney General Liz Murrill will speak about CVS and pharmacy benefit managers Tuesday afternoon. According to Murrill's office, legal action against CVS will be announced. A class action lawsuit was filed against a CVS subsidiary on June 18 after thousands of messages via email and text were sent to Louisiana residents urging them to oppose House Bill 358. The bill aimed to prevent PBMs…
Ottumwa Courier
Businesses, organizations file lawsuit challenging new Iowa pharmacy regulations
A group of several businesses and organizations filed a lawsuit Monday challenging the new Iowa law putting regulations in place for pharmacy benefit managers, the companies negotiating prescription drug prices between drug manufacturers, pharmacies and health insurance companies.
Iowa business groups sue state, ask judge to strike law designed to help rural pharmacies
The new law would place new regulations on pharmacy benefit managers, which are companies that function as intermediaries between insurance providers and drug manufacturers.
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