Indiana 2025 Regular Session

Indiana Senate Bill SB0003 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	ES0003.1
	2	+	March 25, 2025
	3	+	ENGROSSED
	4	+	SENATE BILL No. 3
	5	+	_____
	6	+	DIGEST OF SB 3 (Updated March 25, 2025 1:52 pm - DI 141)
	7	+	Citations Affected: IC 27-1.
	8	+	Synopsis: Fiduciary duty in health plan administration. Provides that
	9	+	any third party administrator or pharmacy benefit manager acting on
	10	+	behalf of a plan sponsor owes a fiduciary duty to the plan sponsor.
	11	+	Effective: July 1, 2025.
	12	+	Busch, Charbonneau, Garten,
	13	+	Johnson T, Randolph Lonnie M
	14	+	(HOUSE SPONSORS — CARBAUGH, CAMPBELL)
	15	+	January 14, 2025, read first time and referred to Committee on Health and Provider
	16	+	Services.
	17	+	January 29, 2025, amended, reported favorably — Do Pass.
	18	+	February 13, 2025, read second time, ordered engrossed. Engrossed.
	19	+	February 17, 2025, read third time, passed. Yeas 47, nays 0.
	20	+	HOUSE ACTION
	21	+	March 3, 2025, read first time and referred to Committee on Insurance.
	22	+	March 25, 2025, amended, reported — Do Pass.
	23	+	ES 3—LS 6336/DI 141 March 25, 2025
1	24		First Regular Session of the 124th General Assembly (2025)
2	25		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	26		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	27		additions will appear in this style type, and deletions will appear in this style type.
5	28		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	29		provision adopted), the text of the new provision will appear in this style type. Also, the
7	30		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	31		a new provision to the Indiana Code or the Indiana Constitution.
9	32		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	33		between statutes enacted by the 2024 Regular Session of the General Assembly.
11		-	SENATE ENROLLED ACT No. 3
12		-	AN ACT to amend the Indiana Code concerning insurance.
	34	+	ENGROSSED
	35	+	SENATE BILL No. 3
	36	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	37	+	insurance.
13	38		Be it enacted by the General Assembly of the State of Indiana:
14		-	SECTION 1. IC 27-1-25.5 IS ADDED TO THE INDIANA CODE
15		-	AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
16		-	JULY 1, 2025]:
17		-	Chapter 25.5. Fiduciary Duties
18		-	Sec. 1. As used in this chapter, "fiduciary duty" includes the
	39	+	1 SECTION 1. IC 27-1-25.5 IS ADDED TO THE INDIANA CODE
	40	+	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
	41	+	3 JULY 1, 2025]:
	42	+	4 Chapter 25.5. Fiduciary Duties
	43	+	5 Sec. 1. As used in this chapter, "fiduciary duty" includes the
	44	+	6 duty to:
	45	+	7 (1) act with loyalty and care in the best interest of the plan
	46	+	8 sponsor;
	47	+	9 (2) ensure that all fees, costs, and commissions are reasonably
	48	+	10 and fully disclosed;
	49	+	11 (3) avoid self-dealing and conflicts of interest; and
	50	+	12 (4) maintain transparency in all financial and contractual
	51	+	13 arrangements related to the plan sponsor's health insurance
	52	+	14 coverage, including prescription drug benefits.
	53	+	15 Sec. 2. As used in this chapter, "health insurance coverage"
	54	+	16 includes:
	55	+	17 (1) a group policy of accident and sickness insurance (as
	56	+	ES 3—LS 6336/DI 141 2
	57	+	1 defined in IC 27-8-5-1);
	58	+	2 (2) a group contract (as defined in IC 27-13-1-16) that
	59	+	3 provides coverage for basic health care services (as defined in
	60	+	4 IC 27-13-1-4); and
	61	+	5 (3) any other group health plan that limits eligibility to
	62	+	6 members of a specific group.
	63	+	7 The term includes coverage of a dependent of the covered
	64	+	8 individual under a group policy or contract described in
	65	+	9 subdivisions (1) through (3).
	66	+	10 Sec. 3. As used in this chapter, "insurer" means an insurer that
	67	+	11 provides health insurance coverage to a covered individual.
	68	+	12 Sec. 4. As used in this chapter, "pharmacy benefit manager" has
	69	+	13 the meaning set forth in IC 27-1-24.5-12.
	70	+	14 Sec. 5. As used in this chapter, "plan sponsor" means an
	71	+	15 employer or organization that offers health insurance coverage to
	72	+	16 its employees or members through an insurer or a self-funded
	73	+	17 health benefit plan.
	74	+	18 Sec. 6. Any:
	75	+	19 (1) third party administrator; or
	76	+	20 (2) pharmacy benefit manager;
	77	+	21 acting on behalf of a plan sponsor owes a fiduciary duty to the plan
	78	+	22 sponsor.
	79	+	ES 3—LS 6336/DI 141 3
	80	+	COMMITTEE REPORT
	81	+	Mr. President: The Senate Committee on Health and Provider
	82	+	Services, to which was referred Senate Bill No. 3, has had the same
	83	+	under consideration and begs leave to report the same back to the
	84	+	Senate with the recommendation that said bill be AMENDED as
	85	+	follows:
	86	+	Page 1, line 10, after "2." insert "As used in this chapter,
	87	+	"fiduciary duty" means an obligation to do the following:
	88	+	(1) Act prudently and solely in the best interest of the plan
	89	+	sponsor in the management of any activities concerning the
	90	+	health insurance coverage of a plan sponsor, including, if
	91	+	applicable, a prescription drug benefit.
	92	+	(2) Account for and disclose to the plan sponsor any:
	93	+	(A) compensation received; or
	94	+	(B) potential conflict of interest;
	95	+	in a manner that would allow a plan sponsor to take into
	96	+	consideration the information.
	97	+	(3) Ensure compliance with applicable federal and state law.
	98	+	Sec. 3.".
	99	+	Page 2, line 5, delete "3." and insert "4.".
	100	+	Page 2, line 7, delete "4." and insert "5.".
	101	+	Page 2, line 9, delete "5." and insert "6.".
	102	+	Page 2, line 11, delete "6." and insert "7.".
	103	+	Page 2, line 15, delete "7." and insert "8. (a) This section does not
	104	+	apply to an insurance producer that is compensated on a flat fee
	105	+	basis instead of on a percentage basis.
	106	+	(b)".
	107	+	and when so amended that said bill do pass.
	108	+	(Reference is to SB 3 as introduced.)
	109	+	CHARBONNEAU, Chairperson
	110	+	Committee Vote: Yeas 11, Nays 0.
	111	+	ES 3—LS 6336/DI 141 4
	112	+	COMMITTEE REPORT
	113	+	Mr. Speaker: Your Committee on Insurance, to which was referred
	114	+	Senate Bill 3, has had the same under consideration and begs leave to
	115	+	report the same back to the House with the recommendation that said
	116	+	bill be amended as follows:
	117	+	Page 1, delete lines 5 through 17, begin a new paragraph and insert:
	118	+	"Sec. 1. As used in this chapter, "fiduciary duty" includes the
19	119		duty to:
20	120		(1) act with loyalty and care in the best interest of the plan
21	121		sponsor;
22	122		(2) ensure that all fees, costs, and commissions are reasonably
23	123		and fully disclosed;
24	124		(3) avoid self-dealing and conflicts of interest; and
25	125		(4) maintain transparency in all financial and contractual
26	126		arrangements related to the plan sponsor's health insurance
27		-	coverage, including prescription drug benefits.
28		-	Sec. 2. As used in this chapter, "health insurance coverage"
29		-	includes:
30		-	(1) a group policy of accident and sickness insurance (as
31		-	defined in IC 27-8-5-1);
32		-	(2) a group contract (as defined in IC 27-13-1-16) that
33		-	provides coverage for basic health care services (as defined in
34		-	IC 27-13-1-4); and
35		-	(3) any other group health plan that limits eligibility to
36		-	SEA 3 — Concur 2
37		-	members of a specific group.
38		-	The term includes coverage of a dependent of the covered
39		-	individual under a group policy or contract described in
40		-	subdivisions (1) through (3).
41		-	Sec. 3. As used in this chapter, "insurer" means an insurer that
42		-	provides health insurance coverage to a covered individual.
43		-	Sec. 4. As used in this chapter, "pharmacy benefit manager" has
44		-	the meaning set forth in IC 27-1-24.5-12.
45		-	Sec. 5. As used in this chapter, "plan sponsor" means an
46		-	employer or organization that offers health insurance coverage to
47		-	its employees or members through an insurer or a self-funded
48		-	health benefit plan.
49		-	Sec. 6. Any:
	127	+	coverage, including prescription drug benefits.".
	128	+	Page 2, delete lines 1 through 4.
	129	+	Page 2, line 5, delete "3." and insert "2.".
	130	+	Page 2, delete lines 17 through 18.
	131	+	Page 2, line 19, delete "5." and insert "3.".
	132	+	Page 2, line 21, delete "6." and insert "4.".
	133	+	Page 2, line 23, delete "7." and insert "5.".
	134	+	Page 2, delete lines 27 through 36, begin a new paragraph and
	135	+	insert:
	136	+	"Sec. 6. Any:
50	137		(1) third party administrator; or
51	138		(2) pharmacy benefit manager;
52	139		acting on behalf of a plan sponsor owes a fiduciary duty to the plan
53		-	sponsor.
54		-	SEA 3 — Concur President of the Senate
55		-	President Pro Tempore
56		-	Speaker of the House of Representatives
57		-	Governor of the State of Indiana
58		-	Date: Time:
59		-	SEA 3 — Concur
	140	+	sponsor.".
	141	+	and when so amended that said bill do pass.
	142	+	(Reference is to SB 3 as printed January 30, 2025.)
	143	+	CARBAUGH
	144	+	Committee Vote: yeas 11, nays 0.
	145	+	ES 3—LS 6336/DI 141