What Employers Need to Know
As a small or medium-sized business in Indiana, managing your employee health benefits is both a critical responsibility and a significant cost. With the introduction of Indiana Senate Bill 3 (SB 3), effective July 1, 2025, the landscape of employer-sponsored health plans is undergoing a transformative shift. This new legislation brings heightened accountability and transparency to how health plans are managed, and it’s essential for employers to understand its implications.
At KBIC Consulting, we’re committed to helping you navigate these changes with confidence. In our latest whitepaper, Navigating Indiana Senate Bill 3: A Guide for Employer-Sponsored Health Plans, we break down what SB 3 means for your business and how a fiduciary-first approach can optimize your health plan. Below, we’ll highlight the key points and why this matters for your organization.
What is Indiana Senate Bill 3?
SB 3 is a game-changer for the health insurance ecosystem in Indiana. Its primary goal is to ensure that service providers, such as Third-Party Administrators (TPAs) and Pharmacy Benefit Managers (PBMs), operate with a fiduciary duty when managing employer-sponsored group health plans. This means they are legally obligated to act in the best financial interest of your business, prioritizing transparency and accountability.
Key Provisions of SB 3:
- Fiduciary Duty: TPAs and PBMs must prioritize your plan’s interests, moving beyond a basic “suitability” standard to a higher level of accountability.
- Transparency Requirements: Service providers must disclose their compensation and any potential conflicts of interest, ensuring you have a clear picture of how your plan is managed.
- Standards of Care: Providers are required to act prudently, adhering to specific guidelines that safeguard your plan’s financial health.
What SB 3 Doesn’t Cover:
If your business operates a self-funded health plan governed by ERISA (Employee Retirement Income Security Act), SB 3 generally does not apply due to federal preemption. However, the principles of SB 3 can still serve as a powerful framework for negotiating stronger, fiduciary-level contracts with your TPAs and PBMs.
Why Fiduciary Responsibility Matters
The distinction between a suitability standard and a fiduciary standard is critical. While a suitability standard ensures a product or service is “appropriate” for your needs, a fiduciary standard demands that providers act with undivided loyalty, always putting your interests first. This higher standard eliminates conflicts of interest and ensures decisions are made with your business’s best interests at heart.
For employers, this shift underscores the importance of working with partners who embrace fiduciary responsibility. At KBIC Consulting, we’ve operated as a fee-only, independent fiduciary since 2010, free from the commissions, insurance transaction fees that can create conflicts of interest for traditional advisors. Our approach aligns perfectly with the spirit of SB 3, empowering you to make informed, conflict-free decisions about your health plan.
How KBIC Consulting Can Help
Navigating the complexities of health plan management requires expertise and a partner you can trust. KBIC Consulting acts as an extension of your team, taking on fiduciary and settlor duties to reduce the burden on your leadership. Our services include:
- Program Evaluation: Assessing your health plan’s design and costs to ensure alignment with your goals.
- Broker Performance Review: Scrutinizing your current advisors to ensure they deliver value.
- Risk Strategy Development: Crafting strategies that balance cost, compliance, and employee satisfaction.
- Collaborative Approach: Working alongside your existing brokers to prioritize your business’s economic performance.
By partnering with KBIC, you gain peace of mind knowing your health plan is managed with transparency, expertise, and your best interests at heart.
Download Our Whitepaper
Ready to dive deeper into SB 3 and its impact on your health plan? Download our comprehensive whitepaper, Navigating Indiana Senate Bill 3: A Guide for Employer-Sponsored Health Plans, for actionable insights and strategies to optimize your benefits program.
Download the Whitepaper Now
Stay ahead of the curve and ensure your health plan is built on a foundation of accountability and trust. Contact KBIC Consulting today to learn how our fiduciary-first approach can transform your benefits strategy.