Bill > SB0003

This bill establishes a new chapter in Indiana law that defines and mandates fiduciary duties for third-party administrators and pharmacy benefit managers (PBMs) working with health insurance plans. Specifically, the bill requires these entities to act with loyalty and care in the best interest of the plan sponsor (typically an employer), ensure full disclosure of fees and costs, avoid conflicts of interest, and maintain transparency in financial and contractual arrangements. The legislation broadly defines health insurance coverage to include group insurance policies, health care service contracts, and other group health plans. A fiduciary duty is legally imposed, meaning these administrators and PBMs must prioritize the plan sponsor's interests over their own. Key definitions are provided for terms like "plan sponsor," which includes employers offering health coverage to employees, and "insurer," referring to entities providing health insurance. The bill will take effect on July 1, 2025, and aims to increase accountability and reduce potential financial exploitation in health plan administration by establishing clear legal responsibilities for third-party administrators and pharmacy benefit managers.