*SB0003.1*
January 30, 2025
SENATE BILL No. 3
_____
DIGEST OF SB 3 (Updated January 29, 2025 12:14 pm - DI 104)
Citations Affected: IC 27-1.
Synopsis: Fiduciary duty in health plan administration. Provides that
a 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, Charbonneau, Garten,
Johnson T
January 14, 2025, read first time and referred to Committee on Health and Provider
Services.
January 29, 2025, amended, reported favorably — Do Pass.
SB 3—LS 6336/DI 141 January 30, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
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, "fiduciary duty" means an
11 obligation to do the following:
12 (1) Act prudently and solely in the best interest of the plan
13 sponsor in the management of any activities concerning the
14 health insurance coverage of a plan sponsor, including, if
15 applicable, a prescription drug benefit.
16 (2) Account for and disclose to the plan sponsor any:
17 (A) compensation received; or
SB 3—LS 6336/DI 141 2
1 (B) potential conflict of interest;
2 in a manner that would allow a plan sponsor to take into
3 consideration the information.
4 (3) Ensure compliance with applicable federal and state law.
5 Sec. 3. As used in this chapter, "health insurance coverage"
6 includes:
7 (1) a group policy of accident and sickness insurance (as
8 defined in IC 27-8-5-1);
9 (2) a group contract (as defined in IC 27-13-1-16) that
10 provides coverage for basic health care services (as defined in
11 IC 27-13-1-4); and
12 (3) any other group health plan that limits eligibility to
13 members of a specific group.
14 The term includes coverage of a dependent of the covered
15 individual under a group policy or contract described in
16 subdivisions (1) through (3).
17 Sec. 4. As used in this chapter, "insurance producer" has the
18 meaning set forth in IC 27-1-15.6-2(9).
19 Sec. 5. As used in this chapter, "insurer" means an insurer that
20 provides health insurance coverage to a covered individual.
21 Sec. 6. As used in this chapter, "pharmacy benefit manager" has
22 the meaning set forth in IC 27-1-24.5-12.
23 Sec. 7. As used in this chapter, "plan sponsor" means an
24 employer or organization that offers health insurance coverage to
25 its employees or members through an insurer or a self-funded
26 health benefit plan.
27 Sec. 8. (a) This section does not apply to an insurance producer
28 that is compensated on a flat fee basis instead of on a percentage
29 basis.
30 (b) Any:
31 (1) third party administrator;
32 (2) pharmacy benefit manager;
33 (3) employee benefit consultant; or
34 (4) insurance producer;
35 acting on behalf of a plan sponsor owes a fiduciary duty to the plan
36 sponsor.
SB 3—LS 6336/DI 141 3
COMMITTEE REPORT
Mr. President: The Senate Committee on Health and Provider
Services, to which was referred Senate Bill No. 3, has had the same
under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Page 1, line 10, after "2." insert "As used in this chapter,
"fiduciary duty" means an obligation to do the following:
(1) Act prudently and solely in the best interest of the plan
sponsor in the management of any activities concerning the
health insurance coverage of a plan sponsor, including, if
applicable, a prescription drug benefit.
(2) Account for and disclose to the plan sponsor any:
(A) compensation received; or
(B) potential conflict of interest;
in a manner that would allow a plan sponsor to take into
consideration the information.
(3) Ensure compliance with applicable federal and state law.
Sec. 3.".
Page 2, line 5, delete "3." and insert "4.".
Page 2, line 7, delete "4." and insert "5.".
Page 2, line 9, delete "5." and insert "6.".
Page 2, line 11, delete "6." and insert "7.".
Page 2, line 15, delete "7." and insert "8. (a) This section does not
apply to an insurance producer that is compensated on a flat fee
basis instead of on a percentage basis.
(b)".
and when so amended that said bill do pass.
(Reference is to SB 3 as introduced.)
CHARBONNEAU, Chairperson
Committee Vote: Yeas 11, Nays 0.
SB 3—LS 6336/DI 141