LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6503 NOTE PREPARED: Dec 11, 2024
BILL NUMBER: SB 140 BILL AMENDED:
SUBJECT: Pharmacy Benefits.
FIRST AUTHOR: Sen. Charbonneau BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill requires an ambulatory pharmacy to provide, before March 1, 2027, and
March 1 of every other year thereafter, data to the Indiana Board of Pharmacy relating to the pharmacy's
dispensing costs for the previous calendar year. It requires the board to share the dispensing data with the
Commissioner of the Department of Insurance. It also requires the commissioner to: (1) make a determination
relating to the average cost to dispense a prescription drug in an ambulatory pharmacy for purposes of
determining the minimum reimbursement for a professional dispensing fee; and (2) conduct a study every
two years relating to the dispensing data.
This bill requires an insurer, a pharmacy benefit manager, or any other administrator of pharmacy benefits
to ensure that a network utilized by the insurer, pharmacy benefit manager, or other administrator is
reasonably adequate and accessible and file an annual report regarding the networks with the commissioner.
It sets forth certain limitations and requirements with respect to the provision of pharmacy or pharmacist
services under a health plan.
This bill allows any insured, pharmacy, or pharmacist impacted by an alleged violation to file a complaint
with the commissioner. It provides that the commissioner may order reimbursement to any person who has
incurred a monetary loss as a result of a violation. It also repeals a superseded provision relating to equal
access and incentives to pharmacies within a pharmacy benefit manager's network.
Effective Date: January 1, 2026.
Explanation of State Expenditures: Summary: The bill’s requirements are expected to increase workload
for the Indiana Department of Insurance (DOI) and the Indiana Board of Pharmacy beyond existing capacity.
The additional staff required to meet the workload is estimated to cost between $264,000 and $276,000 per
year. However, the bill allows the DOI and the Board to contract with one or more third party vendors or
contractors to meet the requirements of the bill. Costs resulting from this bill may come either in the form
of additional salary expenses or contract costs. [The DOI is funded through a dedicated agency fund.]
Additional Information:
SB 140 1 Workload Increases: The bill’s requirements will increase workload for the DOI beyond their current
capacity. To meet the requirements of the bill, the agency would likely need to hire three full-time staff.
Based on existing program director, program coordinator, and analyst positions within the agency, employing
the additional staff is estimated to cost between $264,000 and $276,000 per year, inclusive of salary and
benefits.
The bill’s requirements will increase workload for the Board but should be able to be implemented within
the regularly scheduled meetings of the Board. The Board met 14 times in CY 2024 with the Board’s
Rulemaking Subcommittee meeting an additional eight times in the year.
State Employee Health Plan: The bill’s requirements may result in changes to costs for future contracts
between the State Employee Health Plan and pharmacy benefit managers. Any resulting change in future
costs will depend on the terms of the contracts.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Insurance; Indiana Board of Pharmacy, Professional Licensing
Agency; State Personnel Department.
Local Agencies Affected:
Information Sources: State Staffing Table, December 2024;
https://www.in.gov/pla/professions/pharmacy-home/pharmacy-board/#Current_Year_Board_Agendas.
Fiscal Analyst: Jason Barrett, 317-232-9809.
SB 140 2