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Bill to impose fiduciary duties on PBMs and benefit consultants divided stakeholders
Summary
Senate Bill 3 would require PBMs, TPAs and benefit consultants acting for plan sponsors to “act with a fiduciary duty,” a change advocates say would increase transparency and accountability while critics say it could create litigation risk and reduce negotiating leverage.
Senate Bill 3, introduced to the House Insurance Committee by State Senator Justin Bush, would require certain third parties that administer or advise on employee health plans to “act with a fiduciary duty, prudently and loyally, in the interest of the sponsor.”
Secretary Gloria Sachdev, Indiana Secretary for Health and Family Services, told the committee the governor’s office “rises in strong support” of the bill and said fiduciary obligations for PBMs, third‑party administrators and benefit consultants are necessary for employers to meet their own fiduciary duties under ERISA. She said employers cannot meet their legal obligations if third parties do not provide transparent, accountable advice.
Supporters — including school trust…
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