Economic development works best when policymakers, economic development organizations and corporate leaders are aligned.
Of course, that alignment doesn’t always happen.
While Iowa’s state government has generally maintained a pro-business posture in recent years, a recently signed law has drawn sharp opposition from major business groups, including the Iowa Association of Business and Industry (ABI).
Too often, economic development organizations – especially those partially funded by public entities – pull their punches when confronting anti-business policy, wary of jeopardizing funding. We’ve seen this before, notably with the minimum wage issue.
But not this time, and not with ABI, Iowa’s oldest and largest business advocacy group, which is leading the charge against a law passed by the Republican-led legislature and signed by Iowa Governor Kim Reynolds.
The law, Senate File 383, seeks to regulate employer health plans and pharmacy benefit managers (PBMs), organizations that assist health benefit plans in the purchase of prescription-drug benefits for individuals covered under those health plans.
According to a press release, ABI and the plaintiffs collectively argue that SF 383 is unlawful because it sets up a regulatory regime that is contrary to one already passed by Congress. As a result, the Iowa law is preempted, or overridden, by federal law.
Further, the law is unconstitutional, as it restricts commercial free speech related to pharmacy benefits and networks, making it illegal for employers to tell their employees about ways to save money, such as avoiding a $10.68 fee by using certain pharmacies.
“We’re challenging this new Iowa law because it’s going to raise health care costs for businesses of all sizes across the state by hundreds of millions of dollars,” ABI President Nicole Crain said.
A federal judge on June 30 granted plaintiffs’ request for a two-week restraining order, temporarily halting the Iowa Insurance Division from enforcing the new law.
We applaud Ms. Crain and ABI, and the other plaintiffs, for taking a firm stance against this burdensome policy and for truly looking out for the best interests of its members.
Welcome to Juliet Abdel
Outgoing Cedar Rapids Metro Economic Alliance Executive Director Doug Neumann often described that role as “the best job in the world.” To us, it also appears to be an exceedingly complex job.
The post comes with differing expectations from different stakeholders within the membership. For example, most city leaders want more of a focus on economic growth in their specific city, while most business leaders don’t necessarily care where economic growth comes from and whether it’s in Marion or Coralville or Cedar Rapids. Additionally, some members want more business recruitment, while others don’t want that at all.
All of this was exacerbated by the consolidation of the Cedar Rapids Chamber of Commerce and Priority One into the current Economic Alliance.
Coming into this challenge is Mr. Neumann’s recently named replacement, Juliet Abdel from the Greater Topeka Partnership in Kansas’ capital city. Ms. Abdel is currently president of the Greater Topeka Chamber and senior vice president of the Partnership.
Ms. Abdel will start her new position effective July 28 and brings an interesting mix of experience to this important role in the Corridor. Notably, she worked as the chief operating officer of the Oklahoma Trucking Association, which should certainly help her understand this important industry in the Corridor.
One subtle, but symbolic change during this leadership transition is that she will assume the role of CEO and president rather than the executive director title that Mr. Neumann held for the past nine years.
We’re hoping that this subtle change and others by the board will position Ms. Abdel for success in an inherently challenging position. Perhaps Ms. Abdel has strategies to combat these conflicting priorities and take a more regional approach to economic development.
We wish her the best of luck.
