LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6590 NOTE PREPARED: Feb 17, 2022
BILL NUMBER: SB 136 BILL AMENDED: Feb 15, 2022
SUBJECT: Dental Plans.
FIRST AUTHOR: Sen. Zay BILL STATUS: 2
nd
Reading - 2
nd
House
FIRST SPONSOR: Rep. Zent
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill prohibits a dental plan (an insurance policy, a health maintenance
organization contract, or a preferred provider plan) from directly or indirectly requiring a dental provider to
provide a dental service to a covered individual at a fee amount that is:
(1) set by the dental plan; or
(2) subject to the approval of the dental plan;
unless the dental service is a covered service under the dental plan.
It prohibits a third party administrator or another person from arranging for a dental provider to provide
dental services for a dental plan that sets the amount of the fee for any dental services unless the dental
services are covered services under the dental plan.
The bill also authorizes the Insurance Commissioner to issue a cease and desist order against a person that
violates any of these prohibitions and, if the person violates the cease and desist order, to impose a civil
penalty upon the person and suspend or revoke the person's certificate of authority.
Effective Date: July 1, 2022.
Explanation of State Expenditures: The Department of Insurance (DOI) may have additional workload to
issue cease and desist orders and to publish notice and hold hearings for violation of the cease and desist
order. Assuming near customary agency staffing and resource levels, the added work should be able to be
implemented with no additional appropriations. [The DOI is funded through a dedicated agency fund.]
Explanation of State Revenues: Additional fees may be collected at the discretion of the judge and
SB 136 1 depending upon the particular type of case. The bill allows the DOI impose a civil penalty of up to $10,000
for each day of a violation, which would be deposited in the state General Fund. Suspending or revoking a
violator’s certificate of authority would reduce the fee revenue to that is deposited in the agency’s dedicated
fund.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Insurance.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Karen Rossen, 317-234-2106.
SB 136 2