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A dangerous proposal – HB 1200 – is being considered by lawmakers this session that would set price caps on hospitals that care for Hoosiers on the state employee health plan. This would result in an immediate cost shift of approximately $80 million to employers and hardworking Hoosiers year after year, and will only jeopardize access to care for our public servants working for Indiana taxpayers.
By setting an arbitrary level of reimbursement that does not take into account the payor mix and cost pressures on the health care system, or the level of services being provided to state employees at each individual hospital, lawmakers will force a further shift of unpaid costs onto all other employers across the state.
Price caps are never acceptable, and any rate setting by the government has immediate impacts on a hospital’s ability to continue providing vital services to Hoosiers who need them most. If House Bill 1200 moves forward, hospitals will have to cut more services, like essential obstetrics care, which is already at risk.
Indiana lawmakers have rightfully prioritized lowering health care costs, and there’s a better path forward this session. House Bill 1393 would protect access to care in all communities throughout Indiana at no cost to the State – while also reducing the cost shift onto commercial insurance paid by employers – by increasing Medicaid reimbursement to Indiana hospitals, which are paid the lowest rates among all surrounding states.
House Bill 1393 is the right solution for Indiana, and lawmakers should reject harmful proposals like House Bill 1200.
