LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6503 NOTE PREPARED: Feb 13, 2025
BILL NUMBER: SB 140 BILL AMENDED: Feb 13, 2025
SUBJECT: Pharmacy Benefits.
FIRST AUTHOR: Sen. Charbonneau BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) 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 It also repeals a superseded provision relating to equal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: (Revised) 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. [The DOI is funded through a dedicated agency fund.]
Additional Information:
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.
SB 140 1 (Revised) State Employee Health Plan: The bill allows, but does not require, the DOI to create a pharmacy
benefit manager (PBM) within the agency to fulfill the PBM requirements for the State Employee Health
Plan (SEHP). Also, the bill’s requirements may result in changes to costs for any future contracts between
the SEHP and PBMs. 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; all state agencies.
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