As end of session looms, state budget bill dominates another busy day at the Statehouse

Following a session meeting that did not finish until after midnight on Monday, the Indiana Senate worked for over seven hours to finish all bills on their third reading on Tuesday—the deadline for final third readings in both the House and Senate.

HB 1001

The largest bill, House Bill 1001, regards the state budget and is over 170 pages long, affecting every taxpayer in the state. The bill includes significant changes to education, health care, taxes, public safety, utilities, transportation, state offices and administrations, and more.

The Indiana Capital Chronicle documented Sen. Fady Qaddoura, D-Indianapolis, expressing his concerns with HB 1001’s influence on health care.

“The question is not whether or not Indiana has the resources—it is the question about the priorities. Sen. Mishler and my colleagues are correct: Medicaid is growing and public education is growing,” said Qaddoura. “Doesn’t it concern you that two million out of 6.9 million have to rely on some form of health care provided by the government?”

One of the biggest changes to the state budget is related to public and charter school funding. A large protest, organized by the Indiana State Teacher Association, took place in the Statehouse Monday, advocating against HB 1001. The bill would essentially cut funding for the majority of public schools and add funding to private and charter schools.

The bill also eliminates a previously required $38 million annual transfer to the Health and Hospital Corporation of Marion County, allowing for those funds to be freely used elsewhere.

HB 1001 outlines payment rules for managed care organizations, creates a fund for health facility plan reviews, and restricts high-salaried community mental health centers from receiving local/state funding, excluding Medicaid.

Indiana’s health-care system has been criticized, and HB 1001 seeks to make even more changes to it.

The bill limits local health fund use to legal U.S. residents, modifies eligibility rules for state child-care programs like the Child Care Development Fund and On My Way Pre-K.

HB 1001 restricts additional state requirements for certain health funding contracts. The bill also expands psychedelic research funding, removes child services caseload caps, and allows the transfer of the Child Support Bureau to the Department of State Revenue.

The bill creates three new tax credits: one for rural fund capital investments, one for workforce development and one for beginning farmers. The goal is to incentivize investors in these three areas to push more money into their respective portions of the economy.

For public safety, HB 1001 mandates pay adjustments for state police and certain law enforcement officers whenever state employee pay plans change. If state executive employees get a raise, law enforcement will now also receive a raise.

HB 1001 passed 40 to 9 and will head back to the House to review the Senate’s amendments.

HB 1004

House Bill 1004 creates a state-directed payment program and a managed care assessment fee for hospitals, while changing how disproportionate share payments and related funds are handled. The bill tightens financial transparency requirements for nonprofit hospitals and limits the qualifications for community benefits.

Nonprofit hospitals must keep prices below the statewide average or risk losing their nonprofit status. The Office of Management and Budget must study hospital pricing and reimbursement rates. These changes come from skepticismabout these hospitals making full use of their funding in serving Hoosiers.

Sen. Chris Garten, R-Scottsburg, spoke in a passionate manner about how he believes Hoosiers are being stepped on by nonprofit hospitals.

“The moral question in this bill is why are we going to continue to allow nonprofit hospitals to take advantage of Hoosiers moreso than they do in 45 other states with pricing?” Garten said. “The moral question of this bill is simple. Are we going to continue to allow nonprofits to act like for-profits but reap the benefits of being a nonprofit?”

The bill claims to enhance transparency in health insurance by requiring disclosure of commissions, fees and drug pricing data. The bill also expands reporting to the All Payer Claims Database, sets rules for direct-to-employer health-care arrangements, and changes how often claims data must be shared with contract holders.

Sen. Ed. Charbonneau, R-Valparaiso, walked up to the podium excited to make what he claimed was real health-care change.

“If we don’t like what’s happening today, we must pass House Bill 1004,” Charbonneau said. “We need action and we need action now, or things are not going to change.”

HB 1004 passed 29-19 and is going back to the House for amendment approval.

HB 1008

There are 33 counties in Illinois that have petitioned to be annexed into Indiana. This process is several years from being completed, if in fact it could be completed, but House Bill 1008 is one of the first steps being taken to make it a reality.

The bill would create a joint commission between Illinois and Indiana to study whether it is beneficial for the state borders to be adjusted. The group would be composed of 11 total members, six from Indiana and five from Illinois. This group would begin meeting on Sept. 1.

Sen. Shelli Yoder, D-Bloomington, stood in opposition to the bill, stating Hoosiers need lawmakers that put them first.

“Hoosiers deserve a government that works for them. I would say this is a political stunt. Indiana families are working harder than ever, yet wages remain stagnant. Our own governor acknowledged this in the State of the State,” Yoder said. “These are the challenges that should be front and center for our state legislature. Instead, Indiana Statehouse Republicans have spent the better part of this legislative session and even started our session naming (HB) 1008 as a priority.”

Further discussion of the bill included Sen. Greg Taylor, D-Indianapolis, who spoke fervently against HB 1008.

“There is a saying, ‘sick and tired,’ right? I’m sick and tired, Sen. Freeman, of standing here at the microphone now for 30 minutes talking about people from Illinois doing a referendum and coming up with, ‘Hey, we want to be a part of the state of Indiana,’” Taylor said. “So, my friends. This is making my stomach hurt and I’ve got a big stomach. This is a waste of time.”

HB 1008 passed 36 to 13 and will go back to the House to review the Senate’s amendments.