Indiana Senate Bill 140 Signed into Law Imposing Reforms on Pharmacy Benefit Managers

Indiana recently enacted significant new legislation that will impact how pharmacy benefit management services are provided in Indiana. Senate Bill 140 (SB 140), signed into law during the 2025 legislative session, imposes wide-ranging reforms on pharmacy benefit managers (PBMs). The bill introduces new provisions that would directly affect transparency and pharmacy network access involving insurers, PBMs, and pharmacies.

SB 140 significantly impacts how pharmacy networks may be designed. The law requires all pharmacy networks to be “reasonably adequate and accessible,” mandating at minimum that insured individuals have access to a non-mail-order pharmacy within 30 miles of their residence to the extent a pharmacy is available. Insurers and PBMs must submit annual reports detailing their networks to the Indiana Department of Insurance, which will evaluate them for compliance.

The legislation also addresses reimbursement practices, prohibiting pharmacy reimbursements from falling below various metrics. Additionally, SB 140 bars PBMs from penalizing pharmacies that share lower-cost options with patients or sell lower-cost alternatives to patients if one is available.

Insurers and PBMs may still promote networks, but any communication must be accurate, complete, and inclusive of all eligible pharmacies.

Stakeholders—including insurers, PBMs, pharmacies—will need to begin preparations immediately to review contractual arrangements and implement compliance protocols in advance of the January 1, 2026 deadline.

If you would like to discuss how SB 140 may affect your organization or need assistance preparing for compliance, please reach out to your Quarles attorney or:

• Susan Trujillo: (602) 229-5318 / susan.trujillo@quarles.com
• Jake Pallotta: (317) 399-2810 / jake.pallotta@quarles.com