LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6675 NOTE PREPARED: Jan 16, 2025
BILL NUMBER: SB 220 BILL AMENDED:
SUBJECT: State Employee Health Plan Coverage of Alzheimer's.
FIRST AUTHOR: Sen. Walker K BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill requires a state employee health plan to provide coverage for dementia
treatments or medications that are determined to be medically necessary by the physician treating the covered
individual.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill will result in an indeterminate, but likely small, increase in
expenditures for the state employee health plan (SEHP). It is estimated there may be 200 to 250 individuals
covered by the SEHP that could be diagnosed with a form of dementia, limiting the increase in SEHP
expenditures resulting from the bill.
Additional Information: An estimated 95% of all individuals diagnosed with a form of dementia are age 65
or older. There are approximately 2,130 individuals covered by the SEHP who are age 65 or older (3.5% of
the total SEHP enrollment). Also, there are approximately 121,000 adults age 65 and older in Indiana living
with a form of dementia (10% of the state population for that age group).
Step Therapy: The prohibition of step therapy for dementia treatments and medications determined to be
medically necessary will likely modify the utilization of dementia services and medications but may not
impact overall expenditures to the state. Any resulting change in state expenditures from the step therapy
provision is indeterminable and will depend on the cost of the services that increase and that decrease in
utilization.
Explanation of State Revenues:
Explanation of Local Expenditures: The bill is expected to have minimal impact on expenditures for local
units offering employee health plans. [See Explanation of State Expenditures.]
Explanation of Local Revenues:
SB 220 1 State Agencies Affected: State Personnel Department; all state agencies.
Local Agencies Affected: Local units offering employee health plans.
Information Sources: Christy Tittle, SPD; Alzheimer's Association, 2024 Facts and Figures,
https://www.alz.org/media/Documents/alzheimers-facts-and-figures.pdf;
https://www.census.gov/library/stories/2024/04/older-adults-health-coverage.html;
https://www.stats.indiana.edu/profiles/profiles.asp.
Fiscal Analyst: Jason Barrett, 317-232-9809.
SB 220 2