First Regular Session of the 124th General Assembly (2025)
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SENATE ENROLLED ACT No. 3
AN ACT to amend the Indiana Code concerning insurance.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 27-1-25.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 25.5. Fiduciary Duties
Sec. 1. As used in this chapter, "fiduciary duty" includes the
duty to:
(1) act with loyalty and care in the best interest of the plan
sponsor;
(2) ensure that all fees, costs, and commissions are reasonably
and fully disclosed;
(3) avoid self-dealing and conflicts of interest; and
(4) maintain transparency in all financial and contractual
arrangements related to the plan sponsor's health insurance
coverage, including prescription drug benefits.
Sec. 2. As used in this chapter, "health insurance coverage"
includes:
(1) a group policy of accident and sickness insurance (as
defined in IC 27-8-5-1);
(2) a group contract (as defined in IC 27-13-1-16) that
provides coverage for basic health care services (as defined in
IC 27-13-1-4); and
(3) any other group health plan that limits eligibility to
SEA 3 — Concur 2
members of a specific group.
The term includes coverage of a dependent of the covered
individual under a group policy or contract described in
subdivisions (1) through (3).
Sec. 3. As used in this chapter, "insurer" means an insurer that
provides health insurance coverage to a covered individual.
Sec. 4. As used in this chapter, "pharmacy benefit manager" has
the meaning set forth in IC 27-1-24.5-12.
Sec. 5. As used in this chapter, "plan sponsor" means an
employer or organization that offers health insurance coverage to
its employees or members through an insurer or a self-funded
health benefit plan.
Sec. 6. Any:
(1) third party administrator; or
(2) pharmacy benefit manager;
acting on behalf of a plan sponsor owes a fiduciary duty to the plan
sponsor.
SEA 3 — Concur President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
SEA 3 — Concur