Indiana laws regarding payments for health care and administration

A 2025 bill passed in Indiana has several different facets to it, impacting hospitals in many ways. One important way is that nonprofit hospitals are now required to submit audited financial statements to the Indiana Department of Health with very specific data. This audited financial statement will be due before October 1 of each year, and a fine of $10,000.00 per day may be imposed for each day that the financial statements are past due.

Next, the Office of Management and Budget will be required to submit a report to the state government regarding average inpatient and outpatient hospital prices. This report will be used by the government to determine the average inpatient and outpatient price statewide for hospitals. This price will then be used to mandate that a nonprofit hospital in Indiana must adopt prices at least equal or below the statewide average. This must be adhered to by all nonprofit hospitals in Indiana before June 30, 2029. A noncompliant nonprofit hospital will be subject to the forfeiture of its nonprofit status. There are certain exemptions depending on what municipality the nonprofit hospital is in, but in general these rules must be followed by nonprofit hospitals in Indiana.

Another part of the bill that affects third party administrators is the requirement for them to disclose commissions and fees to policyholders in a separate notification from their bill or invoice to the consumer. This disclosure is also applied to insurance producers as well, forcing them to disclose commissions at or before the time of sale.

This bill also introduces the new State Directed Payment Program and a new Managed Care Assessment Fee to help pay the state’s share of Medicaid costs and makes changes to the Hospital Assessment Fee, the Incremental Hospital Assessment Fee, and the usage of these fees.

If you have any questions regarding these laws and how best to comply with them, please contact McNeelyLaw LLP by calling (317) 825-5110.

Disclaimer: This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.