IA SSB1207

Prohibits pharmacy benefits managers (PBMs) from requiring covered persons to purchase pharmacy services or prescription drugs exclusively through mail order pharmacies, except for specialty drugs

Requires 100% of all rebates received by PBMs to be passed through to health carriers or employer plan sponsors for the purpose of reducing premiums

Mandates a $3 professional dispensing fee reimbursement to pharmacies with five or fewer locations, and to pharmacies located in "pharmacy deserts" (areas where the nearest pharmacy is at least 30 miles away)

Prohibits PBMs from reimbursing any Iowa pharmacy less than the amount they reimburse their own affiliated pharmacies for dispensing the same prescription drug

Bans spread pricing (charging third-party payors more for prescription drugs than the PBM reimburses the pharmacy) in all contracts executed, amended, or renewed on or after July 1, 2025, that apply to prescription drug benefits on or after January 1, 2026