Indiana Governor Considers Fee Rules for Nonprofit Hospitals

: A Measure Aimed at Lowering Hospital Bills

After months of debate, Indiana lawmakers have approved a measure that could lead to lower hospital bills. The bill, which was a priority for House Republicans, aims to rein in health care costs.

House Bill 1004 takes another significant step in our pursuit to lower healthcare costs in Indiana.

State Rep. Martin Carbaugh (R-Fort Wayne) said

The measure requires the Indiana Office of Management and Budget to find the average facility charges for a nonprofit hospital in Indiana. If a nonprofit hospital exceeds that amount, they would lose their nonprofit status for one year starting from 2029.

Loss of nonprofit status versus a penalty will impact what benefits are provided to the community to keep Hoosiers healthier and prevent the unnecessary use of hospital services. Many community-based organizations depend on this support to make our communities thrive.

State Rep. Robin Shackleford (D-Indianapolis) said

The bill also requires health insurers to show the state Department of Insurance how the change in hospital fees affects overall rates they charge. Lawmakers hope that provision will lead to savings being passed along to consumers.

The House approved the bill on a party-line vote, and it now goes to Republican Gov. Mike Braun's desk for consideration.