Federal judge grants preliminary injunction protecting Wellmark from enforcement of parts of Senate File 383

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Preliminary injunction temporarily pauses enforcement of select pharmacy benefit manager law provisions, providing clarity for Wellmark employer customers and safeguarding members from higher prescription costs.

DES MOINES, Iowa — United States District Chief Judge Stephanie Rose on Wednesday, Oct. 29, 2025, granted Wellmark Blue Cross and Blue Shield a preliminary injunction protecting the health insurance company, its employer customers and individual members from enforcement of certain provisions of Iowa Senate File 383 (SF 383), the PBM reform law passed by the Iowa Legislature and signed by Governor Reynolds in June. Under the injunction, enforcement of specific sections of SF 383 found to be in conflict with federal law, including the Employee Retirement Income Security Act (ERISA) and the First Amendment to the U.S. Constitution, is temporarily suspended for Wellmark health plans and insurance policies that include pharmacy benefits and that were not already covered under a previous preliminary injunction entered in the ABI vs. Ommen litigation.

The preliminary injunction offers Wellmark pharmacy benefit customers protection regarding the law’s requirement to pay a $10.68 dispensing fee for each prescription filled at retail pharmacies in Iowa, including ERISA, Non-ERISA and individual plan options. In addition, the injunction extends to CVS Caremark^®, Wellmark’s pharmacy benefit manager, for covered health plans and policies.

To protect health care affordability for its members, Wellmark filed suit on Oct. 14, 2025, against the Iowa Insurance Division. The goal of Wellmark’s legal action was to clarify that it may legally pause implementation of certain SF 383 provisions for Wellmark health plans with pharmacy benefits until an appeals court issues a final ruling in ABI v. Ommen, expected in 2026.

Key benefits of the preliminary injunction obtained by Wellmark include:

• Fully insured and self-funded employer customers offering Wellmark pharmacy benefits now have clear compliance guidance.
• More than one million Iowans are shielded from significant increases in prescription medication costs, including the law’s $10.68 dispensing fee.
• The agreement addresses uncertainty caused by the passage of SF 383 by the Iowa Legislature.

Throughout this process, Wellmark has remained committed to supporting its members and employer customers in managing health care costs, including what they pay at the pharmacy. The company continues to advocate for pharmacy benefit manager (PBM) reform that balances access, fairness and financial responsibility.

This preliminary injunction will remain in effect until further court action or resolution of the underlying legal matters. Wellmark will continue to seek clarity, ensure compliance and stand up for the needs of its members and employer customers.