Iowa Pharmacy Benefit Manager Law Partially Blocked by Judge

July 22, 2025, 3:26 PM UTC

An Iowa law regulating pharmacy benefit managers partly violates the Employee Retirement Income Security Act and the First Amendment, a federal Iowa judge ruled.

A coalition of Iowa businesses sued Insurance Commissioner Doug Ommen in the US District Court for the Southern District of Iowa in June over SF 383, a law imposing a wide range of restrictions on health plans and PBMs, which oversee the drug benefit for insurers. The law was set to take effect July 1, but Judge Rebecca Goodgame Ebinger granted a temporary restraining order the day before.

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