New laws aim to reduce health care costs across Indiana 

0
by Tim O’Brien
Reducing health care costs and improving health outcomes are critical priorities for our state. During the 2025 legislative session, several new health-related laws were passed to lower costs, empower patients and create a more transparent health care system.

Some of these new laws include:

Lowering Health Care Costs  
To reduce health care costs, a new law prevents large nonprofit hospital systems from charging more for the same services billed at different facilities. It also requires more public posting of service prices to allow patients to compare costs and make informed decisions and it strengthens efforts to combat Medicaid fraud.

Reducing Prices at Large Nonprofit Hospitals
Indiana has the sixth highest hospital fees in the nation. A new law will require nonprofit hospitals to charge equal to or less than the statewide average for services in order to maintain their nonprofit status in Indiana by 2029. This will help lower costs for Hoosiers and ensure nonprofit hospitals are focused on delivering affordable care.

Reining in Medicaid Spending
Medicaid spending in Indiana has grown by $5 billion in the last four years, ballooning to 22 percent of our state budget. A new law bolsters oversight of Medicaid to prevent fraud and abuse. It strengthens eligibility and accountability measures to ensure tax dollars are used to support those who truly need assistance.

Decreasing Prescription Drug Prices
To increase affordability and access, pharmacy benefit managers (PBMs) must increase price transparency and include more rural pharmacies in their networks. PBMs are barred from certain anti-competitive practices that hurt consumers like preventing pharmacies from advising patients on lower-cost ways to obtain prescriptions.

If you have questions about any of these new laws or want to share your thoughts on health care in our state, don’t hesitate to reach out to my office at h78@iga.in.gov or 317-232-9759. Your input plays a vital role in shaping policies that reflect the needs of our communities.

To learn more and view all newly enacted legislation from the 2025 session, click here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here