INDIANAPOLIS — Indiana hospitals are bracing for a potential $12.7 billion loss over the next decade, and are urging state lawmakers to act now to stabilize funding and protect access to care. The Indiana Hospital Association (IHA) announced its legislative priorities for the 2026 session of the Indiana General Assembly on Jan. 9, focusing on access, workforce safety, and payment reform.
“Indiana hospitals are committed to ensuring every Hoosier has access to affordable, high-quality care,” said Scott B. Tittle, president of the Indiana Hospital Association. “Our legislative agenda reflects the urgent need to strengthen the health care system, support our dedicated workforce, and preserve the nonprofit missions that allow hospitals to serve their communities.”
Medicaid Rates: A Critical Lifeline
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Ensuring hospitals can continue serving all patients, regardless of their ability to pay, is a top priority.
IHA is advocating for the continued implementation of 2025 legislation that increases Medicaid reimbursement for all hospitals without increasing state costs. This funding comes from fees paid by Indiana hospitals themselves. Dr. Brad Barrett, chairman of the House Public Health Committee, has introduced House Bill (HB) 1385 to solidify these gains. The bill aims to ensure Medicare serves as a minimum reimbursement standard and that hospital-paid fees are dedicated to the Healthy Indiana Plan and increased hospital reimbursements.
“With Indiana Medicaid only reimbursing 57 cents on the dollar on average for every Medicaid patient seen, Medicaid reimbursement reform is essential,” Tittle shared. “IHA supports HB 1385 as it seeks to provide stability ahead of the impacts of the federal reconciliation bill, which is expected to result in the loss of $12.7 billion to Indiana hospitals over the next decade.”
Protecting Those on the Front Lines
Healthcare workers face increasing rates of violence, and the IHA is pushing for stronger protections. HB 1040 would enhance criminal penalties for battery against healthcare employees who have contact with patients.
Tittle stated, “We know HB 1040 is only one tool in the toolbox, but it demonstrates to our health care workforce that we see them, we stand with them, and we will not tolerate violence committed against them, as Indiana hospitals continue to implement other strategies across the state.”
Cutting Through Insurance Red Tape
IHA is also targeting policies that create unnecessary hurdles for patients and providers. HB 1271 aims to prevent insurers from using tactics like downcoding and recoupments, which divert resources from patient care.
Additionally, HB 1279 would shift the responsibility of collecting co-pays and deductibles from healthcare providers to insurers, streamlining the patient experience. “Far too often health care providers are tasked with implementing insurer policies,” Tittle explained. “HB 1279 would streamline the patient experience and hold insurers accountable for implementation of their health plan design.”
Preserving Community Care
Indiana’s nonprofit hospitals play a vital role in their communities, and the IHA is advocating to protect their nonprofit status. The association urges lawmakers to focus on legislation that improves patient access and supports high-quality care, rather than adding administrative burdens.
“Indiana’s nonprofit hospitals are proud of the community benefit they provide, but we urge any legislation to be aimed at improving patient access and supporting high-quality care, not creating additional administrative burdens,” Tittle said.
- The IHA is prioritizing Medicaid reimbursement reform to address a significant funding shortfall.
- Legislative efforts are underway to enhance protections for healthcare workers facing violence.
- Proposed bills aim to streamline patient billing and reduce administrative burdens.
- Protecting the nonprofit status of Indiana hospitals is crucial for maintaining community access to care.
