Indiana 2024 Regular Session

Indiana Senate Bill SB0257 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 257
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 27-1-25.5.
7	7	Synopsis: Fiduciary duty in health plan administration. Provides that
8	8	any third party administrator, pharmacy benefit manager, employee
9	9	benefit consultant, or insurance producer acting on behalf of a plan
10	10	sponsor owes a fiduciary duty to the plan sponsor.
11	11	Effective: July 1, 2024.
12	12	Busch
13	13	January 16, 2024, read first time and referred to Committee on Health and Provider
14	14	Services.
15	15	2024 IN 257—LS 6862/DI 141 Introduced
16	16	Second Regular Session of the 123rd General Assembly (2024)
17	17	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
18	18	Constitution) is being amended, the text of the existing provision will appear in this style type,
19	19	additions will appear in this style type, and deletions will appear in this style type.
20	20	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
21	21	provision adopted), the text of the new provision will appear in this style type. Also, the
22	22	word NEW will appear in that style type in the introductory clause of each SECTION that adds
23	23	a new provision to the Indiana Code or the Indiana Constitution.
24	24	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
25	25	between statutes enacted by the 2023 Regular Session of the General Assembly.
26	26	SENATE BILL No. 257
27	27	A BILL FOR AN ACT to amend the Indiana Code concerning
28	28	insurance.
29	29	Be it enacted by the General Assembly of the State of Indiana:
30	30	1 SECTION 1. IC 27-1-25.5 IS ADDED TO THE INDIANA CODE
31	31	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
32	32	3 JULY 1, 2024]:
33	33	4 Chapter 25.5. Fiduciary Duties
34	34	5 Sec. 1. As used in this chapter, "employee benefit consultant"
35	35	6 means a person who:
36	36	7 (1) advises a plan sponsor about; and
37	37	8 (2) assists a plan sponsor in establishing and administering;
38	38	9 employee benefit programs.
39	39	10 Sec. 2. As used in this chapter, "health insurance coverage"
40	40	11 includes:
41	41	12 (1) a group policy of accident and sickness insurance (as
42	42	13 defined in IC 27-8-5-1);
43	43	14 (2) a group contract (as defined in IC 27-13-1-16) that
44	44	15 provides coverage for basic health care services (as defined in
45	45	16 IC 27-13-1-4); and
46	46	17 (3) any other group health plan that limits eligibility to
47	47	2024 IN 257—LS 6862/DI 141 2
48	48	1 members of a specific group.
49	49	2 The term includes coverage of a dependent of the covered
50	50	3 individual under a group policy or contract described in
51	51	4 subdivisions (1) through (3).
52	52	5 Sec. 3. As used in this chapter, "insurance producer" has the
53	53	6 meaning set forth in IC 27-1-15.6-2(9).
54	54	7 Sec. 4. As used in this chapter, "insurer" means an insurer that
55	55	8 provides health insurance coverage to a covered individual.
56	56	9 Sec. 5. As used in this chapter, "pharmacy benefit manager" has
57	57	10 the meaning set forth in IC 27-1-24.5-12.
58	58	11 Sec. 6. As used in this chapter, "plan sponsor" means an
59	59	12 employer or organization that offers health insurance coverage to
60	60	13 its employees or members through an insurer or a self-funded
61	61	14 health benefit plan.
62	62	15 Sec. 7. Any:
63	63	16 (1) third party administrator;
64	64	17 (2) pharmacy benefit manager;
65	65	18 (3) employee benefit consultant; or
66	66	19 (4) insurance producer;
67	67	20 acting on behalf of a plan sponsor owes a fiduciary duty to the plan
68	68	21 sponsor.
69	69	2024 IN 257—LS 6862/DI 141