Employers who sponsor health plans typically utilize administrators, like pharmacy benefits managers, to facilitate those plans. The Senate approved legislation that would clarify those intermediaries have a financial responsibility to the plan sponsors.
Under Senate Bill 3, these business relationships would require what is called a “fiduciary duty” — meaning the intermediaries would be obligated to act in the best financial interest of the employer sponsoring the plan. The goal is to increase transparency and lower health care costs.
This would apply to any third party administrator, pharmacy benefit manager, employee benefit consultant or insurance producer acting on behalf of an employer.
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The author of the bill, Sen. Justin Busch (R-Fort Wayne), said it’s not just about good business practices — he said it’s about fairness.
“It's about ensuring that the hardworking Hoosiers and their families receive the benefits they're promised without unnecessary cost increases or hidden financial arrangements,” Busch said.
During committee testimony, a representative for the Association of Health Plans said the bill could have unintentional consequences.
The bill now heads to the House. The legislation is part of the Senate GOP’s legislative priorities.
Abigail is our health reporter. Contact them at aruhman@wboi.org.