Iowa Lawmaker Faces Lawsuit Over Pharmacy Company's Unpaid Millions

State of Iowa sues NuCara Specialty Pharmacy, co-owned by state legislator, for $22 million in unpaid funds from HIV drug program

Mar. 20, 2026 at 2:58am

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The State of Iowa is suing NuCara Specialty Pharmacy, a pharmaceutical firm co-owned by Iowa state Rep. Brett Barker, alleging the company has failed to pay $22 million owed to the state under a contract to provide discounted HIV medications through a federal assistance program. The lawsuit claims NuCara repeatedly failed to make required monthly payments and improperly used the state's program income to pay other creditors.

Why it matters

The case raises concerns about potential conflicts of interest when state lawmakers have financial stakes in companies that do business with the state. It also highlights the importance of oversight and accountability for state-run health programs that rely on private contractors to provide critical services and medications to low-income residents.

The details

According to the lawsuit, NuCara Ventures, which does business as NuCara Specialty Pharmacy, was contracted by the Iowa Department of Health and Human Services to provide pharmacy services related to sexually transmitted diseases, tuberculosis control, immunization, and substance abuse treatment since 1998. As part of a federal AIDS drug program, NuCara was tasked with ordering outpatient medications at discounted prices and paying the state's 'profit' from billing insurers at standard rates. The state claims NuCara failed to make required monthly payments totaling over $22 million between October 2024 and January 2026, leading the state to terminate the contract on March 6, 2026.

  • NuCara began serving as a state-contracted pharmacy in 1998.
  • Rep. Brett Barker became NuCara's vice president of operations in November 2012.
  • Barker served on the Iowa Board of Pharmacy from May 2017 to December 2021.
  • The state terminated its contract with NuCara on March 6, 2026.
  • Two days after the lawsuit announcement, NuCara notified employees that stores would be closing on March 25, 2026.

The players

NuCara Specialty Pharmacy

A pharmaceutical firm that owns and manages more than 30 pharmacies in Iowa, Texas, North Dakota and Minnesota, and was contracted by the Iowa Department of Health and Human Services to provide pharmacy services related to various health programs.

Rep. Brett Barker

A Republican state legislator from Story County, Iowa, who serves as the vice president of operations for NuCara Specialty Pharmacy.

Iowa Department of Health and Human Services

The state agency that contracted with NuCara Specialty Pharmacy to provide pharmacy services, including for an HIV drug assistance program.

OneroRX

A company that is reportedly pursuing a corporate acquisition of NuCara Specialty Pharmacy, though the state alleges OneroRX does not intend to accept NuCara's liabilities as part of the deal.

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What they’re saying

“There is no knowledge that I have into what's been going on, so I don't have anything to add, I don't have anything to do with that. I am on the community pharmacy side of the business and that's a separate division. So, I wasn't aware of anything until there was a lawsuit filed.”

— Rep. Brett Barker, Vice President of Operations, NuCara Specialty Pharmacy

What’s next

The judge in the case will decide whether to allow NuCara to continue operations as the lawsuit proceeds.

The takeaway

This case highlights the potential conflicts of interest that can arise when state lawmakers have financial stakes in companies that do business with the government. It also underscores the importance of robust oversight and accountability measures for state-run health programs that rely on private contractors to provide critical services and medications to vulnerable populations.