Debates at the Indiana Statehouse about the cost of health care have, for years, been seen as a fight between health care providers and insurers. This dynamic resulted in a system of ever-increasing costs for the third and most important stakeholder — Indiana businesses, employees and their families, who must pay it.
This is an issue that has been building for years. Studies by the Rand Corporation, Petris Center at UC Berkley, the National Academy of State Health Plans, and Harvard Medical School show higher hospital prices, higher profits and higher reserves for Indiana hospitals than the national norm. These costs are passed along to payers.
The hard-fought battle to rein in hospital prices resulted in legislation that will play out over the coming years. HB 1004, authored by Rep. Donna Schaibley, increases hospital price and revenue transparency, eliminates some improper bills by large hospitals, and measures data against a benchmark that allows policy makers to compare prices across the country.
With a clear expectation for providers to reduce costs, the impact of HB 1004 will play out in the market, but it will be monitored and measured by the legislature with established benchmarks. Considering the dollars at stake and the lobbying effort made by Indiana’s nonprofit hospital corporations, the progress made by HB 1004 should be viewed as a significant step forward in reducing Indiana’s high hospital prices.
The IMA appreciates the leadership shown by Speaker Todd Huston, Sens. Rodric Bray, Ed Charbonneau and Chris Garten, and Rep. Schaibley. They and the overwhelming, bipartisan, majority of legislators knew that the status quo could not remain in place; and that ultimately, employers and employees were literally paying the price for a flawed system.
In the years to come, more data will be collected, and hospitals will be given yet another chance to provide solutions. But with the passage of HB 1004, the General Assembly has shown the willingness to put health care consumers above the interests of providers and insurers. Thankfully, Indiana policy makers have started down a path that will lead to less expensive health care for Hoosiers.
The Indiana Manufacturers Association, which was formed in 1901, represents more than 1,100 companies, is dedicated to advocating for a business climate that creates, protects and promotes quality manufacturing jobs in Indiana.
