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

This bill establishes a competitive bidding process (reverse auction) for Iowa's state government to select pharmacy benefits managers (PBMs) that administer prescription drug coverage for public employee health plans. It requires the state department to use a specific technology platform to conduct automated, transparent auctions comparing PBMs' pricing and services, with real-time analysis of all prescription claims. The process affects Iowa's public employee health plans (including state employees but excluding certain retirees) and PBMs seeking state contracts, mandating implementation by November 2025 for contracts starting July 2026. The bill prohibits PBMs from bidding on their own contracts and requires the auction platform to later function as a claims review tool to ensure compliance with contract terms.