A bill for an act relating to pharmacy benefits manager reverse auctions and group insurance for public employees and including effective date provisions.

SF 315, known as the "Iowa Competitive Pharmacy Benefits Managers Marketplace Act," aims to reduce prescription drug costs for public employees in self-funded state health plans. The bill mandates that the state department procure pharmacy benefits manager (PBM) services through a "reverse auction" process. This online, competitive bidding system allows PBMs to offer progressively lower prices for their services. Additionally, the department must acquire a technology platform to conduct these auctions and perform detailed, line-by-line audits of PBM claims to ensure contract compliance. The first PBM contract awarded through this new system is scheduled to take effect on January 1, 2026.