Introduced Version
SENATE BILL No. 3
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 27-1-25.5.
Synopsis: Fiduciary duty in health plan administration. Provides that
any third party administrator, pharmacy benefit manager, employee
benefit consultant, or insurance producer acting on behalf of a plan
sponsor owes a fiduciary duty to the plan sponsor.
Effective: July 1, 2025.
Busch
January 14, 2025, read first time and referred to Committee on Health and Provider
Services.
2025 IN 3—LS 6336/DI 141 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE BILL No. 3
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 27-1-25.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 25.5. Fiduciary Duties
5 Sec. 1. As used in this chapter, "employee benefit consultant"
6 means a person who:
7 (1) advises a plan sponsor about; and
8 (2) assists a plan sponsor in establishing and administering;
9 employee benefit programs.
10 Sec. 2. As used in this chapter, "health insurance coverage"
11 includes:
12 (1) a group policy of accident and sickness insurance (as
13 defined in IC 27-8-5-1);
14 (2) a group contract (as defined in IC 27-13-1-16) that
15 provides coverage for basic health care services (as defined in
16 IC 27-13-1-4); and
17 (3) any other group health plan that limits eligibility to
2025 IN 3—LS 6336/DI 141 2
1 members of a specific group.
2 The term includes coverage of a dependent of the covered
3 individual under a group policy or contract described in
4 subdivisions (1) through (3).
5 Sec. 3. As used in this chapter, "insurance producer" has the
6 meaning set forth in IC 27-1-15.6-2(9).
7 Sec. 4. As used in this chapter, "insurer" means an insurer that
8 provides health insurance coverage to a covered individual.
9 Sec. 5. As used in this chapter, "pharmacy benefit manager" has
10 the meaning set forth in IC 27-1-24.5-12.
11 Sec. 6. As used in this chapter, "plan sponsor" means an
12 employer or organization that offers health insurance coverage to
13 its employees or members through an insurer or a self-funded
14 health benefit plan.
15 Sec. 7. Any:
16 (1) third party administrator;
17 (2) pharmacy benefit manager;
18 (3) employee benefit consultant; or
19 (4) insurance producer;
20 acting on behalf of a plan sponsor owes a fiduciary duty to the plan
21 sponsor.
2025 IN 3—LS 6336/DI 141