FOR IMMEDIATE RELEASE
Contact: Lance Gideon, Senior Press Secretary
Lance.Gideon@iga.in.gov
317-234-9221
STATEHOUSE (July 2, 2025) — A bill authored by State Sen. Chris Garten (R-Charlestown) to hold the health insurance industry accountable and lower health care costs went into effect July 1.
Senate Enrolled Act 3 requires third-party administrators (TPAs), pharmacy benefit managers (PBMs), employee benefit consultants, and health insurance agents or brokers who are paid on a percentage basis to have a fiduciary responsibility to the health plan sponsors they serve.
Fiduciary responsibility—a legal standard already required in fields such as financial advising, accounting, and pension administration—means these entities must act prudently and solely in the best interest of their clients when making financial decisions on their behalf.
"Hoosiers pay some of the highest health care costs in the nation according to several recent studies," Garten said. "Ensuring the health insurance industry has a fiduciary responsibility will not only help lower health care costs for Hoosiers but also build trust between health insurance companies and the employers they work with."
With health insurance companies now legally required to act in a plan sponsor's best interest, SEA 3 removes harmful financial incentives that can drive up the cost of coverage.
Garten emphasized that the law is designed to create long-term savings and restore trust in the employer-sponsored insurance market.
"I believe this is a pocketbook issue for every Indiana business and Hoosier family who receive their health insurance through an employer," Garten said. "By lowering health insurance costs, businesses can invest more in their companies and Hoosiers can keep more of their hard-earned money in their own pockets."
Garten has worked diligently in recent years to lower health care costs in Indiana by:
"I am excited to see SEA 3 go into effect and benefit Hoosiers across the state," Garten said. "As a state senator, I have always and will always put Hoosiers' best interests as a top priority, and I will continue to find new ways to lower health care costs in Indiana."
Sen. Garten can be reached by filling out a "Contact Me" form online at www.IndianaSenateRepublicans.com/Garten or by phone at 800-382-9467.
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State Sen. Chris Garten (R-Charlestown) represents Senate District 45,
which includes Clark County and portions of Floyd County.
Click here to download a high-resolution photo.
