One of the bills introduced in this legislative session will crack down on nonprofit hospitals that exploit their tax-exempt status while charging some of the highest prices in the country.
HB 1004 would strip nonprofit status from hospitals that charge more than 200% above what Medicare pays for services.
Devin Anderson, a board member for Hoosiers for Affordable Healthcare applauded the bill, saying it’s a bold move to address the fact that Indiana has the 9th highest hospital prices in the nation.
“HB 1004 puts real teeth into the effort to hold nonprofit hospitals accountable for the 9th highest prices while having billions in cash reserves,” said Anderson. “This bill sends a clear message from the Indiana House of Representatives Leadership: Lowering prices is not optional—it’s a demand on behalf of the Hoosiers they represent who can’t afford skyrocketing prices from hospitals who masquerade as nonprofits.”
Indiana’s Big Five Hospitals Face Major Price Cuts
The bill, authored by Representative Martin Carbaugh (R-Fort Wayne) and co-authored by Representatives Ben Smaltz (R-Auburn) and Julie McGuire (R-Indianapolis), would force major price adjustments in healthcare. In the Evansville area, Ascension St. Vincent would need to reduce prices by 40.5%, and Deaconess Health System would have to reduce prices by 23%.
“Nonprofit hospitals have enjoyed tax exemptions for years, yet many are charging more than triple what Medicare pays for the same services,” said Anderson. “HB 1004 forces these hospitals to decide—either behave as a nonprofit hospital by lowering your prices or lose the benefits of nonprofit status.”
Key Provisions of HB 1004
Nonprofit Status at Risk: Hospitals charging over 200% of Medicare rates will lose their nonprofit status.
Stricter Community Benefit Standards: Limits what hospitals can claim as community benefits to justify their tax exemptions.
Mandatory Transparency: Hospitals must disclose pricing data compared to Medicare rates and make unredacted Form 990 Schedule H publicly available.
Annual Audits: Nonprofit hospitals will face yearly audits by the Secretary of State to verify compliance.
“This bill is a wake-up call for Indiana hospitals: stop exploiting Hoosiers, or lose your nonprofit status. It’s that simple,” said Anderson.
