Gov. Braun to consider new fee rules for nonprofit hospitals

By GARRETT BERGQUIST
WISH-TV | wishtv.com

Indiana lawmakers have approved a measure they say could lead to lower hospital bills.

It’s part of a long-running debate in the legislature over how to rein in health care costs.

The bill was a priority for House Republicans, and it turned into one of the last bills across the finish line on Thursday. Lawmakers at one point considered imposing penalties for nonprofit hospitals depending on how much they charge.

In its final form, the Indiana Office of Management and Budget would have to find the average facility charges for a nonprofit hospital in Indiana. Then, beginning in 2029, if a nonprofit hospital exceeds that amount, they would lose nonprofit status for one year.

Health insurers would have to show the state Department of Insurance how the change in hospital fees affects overall rates they charge. Lawmakers say they hope that provision leads to savings actually being passed along to consumers.

The House approved it on a party-line vote.

State Rep. Martin Carbaugh, R-Fort Wayne, said “House Bill 1004 takes another significant step in our pursuit to lower health care costs in Indiana. The bill has changed significantly since it left our chamber here in the house but even with those changes, we are making meaningful changes to provide relief to our constituents.”

State Rep. Robin Shackleford, D-Indianapolis said, “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.”

The bill now goes to Republican Gov. Mike Braun’s desk.

This story was originally published by WISH-TV at wishtv.com/news/politics/gov-braun-to-consider-measure-to-potentially-lower-hospital-bills-at-nonprofit-hospitals.