Fabio
121 lines
15 KiB
Markdown
121 lines
15 KiB
Markdown
---
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type: "Bill"
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title: "Health care matters."
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description: "Establishes: (1) a state directed payment program (program) for hospitals; and (2) a managed care assessment fee. Changes disproportionate share payments when a state directed payment program is in effect. Allows the incremental hospital fee fund to be used to fund the Medicaid program. Requires a nonprofit hospital system to submit audited financial statements. Provides for a $10,000 per day penalty for failure to submit the hospital's financial statements. Requires the office of management and budget (office) to: (1) develop a methodology to be used in conducting a study of commercial inpatient hospital prices and outpatient hospital prices; and (2) upon budget committee review, conduct the study to determine Indiana's statewide average inpatient and outpatient hospital prices. Requires the office to submit a report of the study to the governor and general assembly. Before June 30, 2029, requires an Indiana nonprofit hospital system's aggregate average inpatient and outpatient hospital prices to at least be equal to or less than the statewide average. States that a violation by the Indiana nonprofit hospital system results in a forfeiture of its nonprofit status. Requires, before October 1 of each year, every nonprofit hospital to provide the Indiana department of health with specified federally filed forms and specified data used to complete the forms. Requires the Indiana department of health to submit these forms to the health care cost oversight task force and impose a fine of $10,000 per day on a nonprofit hospital for failure to submit the nonprofit hospital's forms. Provides an exemption from health care billing requirements for a facility located in a specified populated municipality. Requires a third party administrator to disclose commissions and fees to policyholders in a separate notification. Requires an insurer and a health maintenance organization to submit specified data information to the all payer claims data base. Requires an insurance producer or third party administrator to, before or at the time of sale, provide the plan sponsor with a statement from the insurer or health maintenance organization, disclosing commissions and fees that the insurance producer or third party administrator will receive. Changes the time frame in which certain information and claims data must be submitted to a contract holder as part of an audit or claims data request. Sets requirements for certain hospitals concerning a direct to employer health care arrangement. Beginning January 1, 2026, requires a state employee health plan, a policy of accident and sickness insurance, and a health maintenance organization contract to provide a plan sponsor with the national average drug acquisition cost of a generic drug. States that if an agreement between a health plan and a pharmacy benefit manager provides that less than 85% of the estimated rebates will be deducted from the cost of prescription drugs before a covered individual's cost sharing requirement is determined, the pharmacy benefit manager must provide the policyholder with an annual notice that includes: (1) an explanation of what a rebate is; (2) an explanation of how rebates accrue to the health plan from the manufacturer; and (3) the aggregate amount of rebates that accrued to the health plan for prescription drugs dispensed under the policyholder's health plan for the previous year. Places limitations on hospital health provider contracts linking to or negotiating reimbursement or terms under a separate hospital health care provider contract or product. Requires the office to: (1) study the effect, including the fiscal impact, of requiring physician reimbursement rates under a commercial policy to be set at a minimum reimbursement rate; and (2) report its findings under the study. Requires certain health carriers to provide claims data to a contract holder not more than four times per year (current law allows for the provision of the data twice annually). Requires certain insurers and health maintenance organizations to file specified information concerning changes in hospital reimbursement to the department of insurance."
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jurisdiction: "us/states/in"
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legislature: "Indiana General Assembly"
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session: "2025"
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identifier: "HB 1004"
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citation: "Indiana HB 1004 (2025)"
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classification: ["bill"]
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subjects: ["AGENCIES; Department of Health (IDOH)", "BUSINESS ORGANIZATIONS AND ASSOCIATIONS; Charitable Organizations and Nonprofits", "HEALTH CARE FACILITIES; Hospitals", "STATE ELECTED OFFICIALS; Secretary of State"]
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status: "enacted"
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primary_sponsors: ["Chris Garten", "Justin Busch", "Martin Carbaugh"]
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version_count: 6
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action_count: 48
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vote_count: 5
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first_action: "2025-01-21"
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last_action: "2025-05-06"
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source: "openstates"
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source_identifier: "ocd-bill/13ad2978-3bab-4983-8f1c-770ecc5638f5"
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source_url: "https://api.iga.in.gov/2025/bills/hb1004"
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source_hash: "42e786ab3e17156b8d1c1dbf5bea9d86404e01b80fa9c0ad4578e172af7d56bc"
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vintage: "2026-07-01"
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source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
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retrieved_at: "2026-07-06"
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confidence: "reported"
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tags: ["legislation", "bill", "us-in"]
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---
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# Indiana HB 1004 (2025) — Health care matters.
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Establishes: (1) a state directed payment program (program) for hospitals; and (2) a managed care assessment fee. Changes disproportionate share payments when a state directed payment program is in effect. Allows the incremental hospital fee fund to be used to fund the Medicaid program. Requires a nonprofit hospital system to submit audited financial statements. Provides for a $10,000 per day penalty for failure to submit the hospital's financial statements. Requires the office of management and budget (office) to: (1) develop a methodology to be used in conducting a study of commercial inpatient hospital prices and outpatient hospital prices; and (2) upon budget committee review, conduct the study to determine Indiana's statewide average inpatient and outpatient hospital prices. Requires the office to submit a report of the study to the governor and general assembly. Before June 30, 2029, requires an Indiana nonprofit hospital system's aggregate average inpatient and outpatient hospital prices to at least be equal to or less than the statewide average. States that a violation by the Indiana nonprofit hospital system results in a forfeiture of its nonprofit status. Requires, before October 1 of each year, every nonprofit hospital to provide the Indiana department of health with specified federally filed forms and specified data used to complete the forms. Requires the Indiana department of health to submit these forms to the health care cost oversight task force and impose a fine of $10,000 per day on a nonprofit hospital for failure to submit the nonprofit hospital's forms. Provides an exemption from health care billing requirements for a facility located in a specified populated municipality. Requires a third party administrator to disclose commissions and fees to policyholders in a separate notification. Requires an insurer and a health maintenance organization to submit specified data information to the all payer claims data base. Requires an insurance producer or third party administrator to, before or at the time of sale, provide the plan sponsor with a statement from the insurer or health maintenance organization, disclosing commissions and fees that the insurance producer or third party administrator will receive. Changes the time frame in which certain information and claims data must be submitted to a contract holder as part of an audit or claims data request. Sets requirements for certain hospitals concerning a direct to employer health care arrangement. Beginning January 1, 2026, requires a state employee health plan, a policy of accident and sickness insurance, and a health maintenance organization contract to provide a plan sponsor with the national average drug acquisition cost of a generic drug. States that if an agreement between a health plan and a pharmacy benefit manager provides that less than 85% of the estimated rebates will be deducted from the cost of prescription drugs before a covered individual's cost sharing requirement is determined, the pharmacy benefit manager must provide the policyholder with an annual notice that includes: (1) an explanation of what a rebate is; (2) an explanation of how rebates accrue to the health plan from the manufacturer; and (3) the aggregate amount of rebates that accrued to the health plan for prescription drugs dispensed under the policyholder's health plan for the previous year. Places limitations on hospital health provider contracts linking to or negotiating reimbursement or terms under a separate hospital health care provider contract or product. Requires the office to: (1) study the effect, including the fiscal impact, of requiring physician reimbursement rates under a commercial policy to be set at a minimum reimbursement rate; and (2) report its findings under the study. Requires certain health carriers to provide claims data to a contract holder not more than four times per year (current law allows for the provision of the data twice annually). Requires certain insurers and health maintenance organizations to file specified information concerning changes in hospital reimbursement to the department of insurance.
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## Version chain
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The bill's text revisions, in order — the diff chain from filing to enrollment.
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1. **Engrossed House Bill (H)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1004/HB1004.07.ENGS.pdf)
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2. **Engrossed House Bill (S)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1004/HB1004.04.ENGH.pdf)
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3. **Enrolled House Bill (H)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1004/HB1004.08.ENRS.pdf)
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4. **House Bill (H)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1004/HB1004.03.COMH.pdf)
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5. **House Bill (S)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1004/HB1004.06.COMS.pdf)
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6. **Introduced House Bill (H)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1004/HB1004.01.INTR.pdf)
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## Votes
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- HB 1004 - Carbaugh - 3rd Reading — **68–26** (pass) · lower
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- HB 1004 - Garten — **37–13** (pass) · upper
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- HB 1004 - Garten - 2nd Reading — **13–36** (fail) · upper
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- HB 1004 - Garten - 3rd Reading — **29–19** (pass) · upper
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- HB 1004 - Carbaugh — **68–23** (pass) · lower
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## Sponsors
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- Chris Garten — primary (person)
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- Justin Busch — primary (person)
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- Martin Carbaugh — primary (person)
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- Ben Smaltz — coauthor (person)
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- Ed Charbonneau — cosponsor (person)
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- Julie McGuire — coauthor (person)
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- Lonnie Randolph — cosponsor (person)
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- Mitch Gore — coauthor (person)
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## Timeline
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The legislative action history — every referral, reading, and vote.
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- **2025-01-21** Coauthored by Representatives McGuire and Smaltz
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- **2025-01-21** Authored by Representative Carbaugh
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- **2025-01-21** First reading: referred to Committee on Public Health `reading-1, referral-committee`
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- **2025-01-30** Representative Gore added as coauthor
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- **2025-02-11** Committee report: amend do pass, adopted `committee-passage`
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- **2025-02-11** Recommitted to Committee on Ways and Means pursuant to House Rule 126.3
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- **2025-02-17** Committee report: amend do pass, adopted `committee-passage`
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- **2025-02-19** Second reading: amended, ordered engrossed `reading-2`
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- **2025-02-19** Amendment #1 (Bauer) prevailed; voice vote `amendment-passage`
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- **2025-02-19** Amendment #6 (Carbaugh) prevailed; voice vote `amendment-passage`
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- **2025-02-19** Amendment #4 (Garcia Wilburn) failed; voice vote `amendment-failure, failure`
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- **2025-02-20** Senate sponsors: Senators Garten, Busch, Johnson T
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- **2025-02-20** Cosponsor: Senator Charbonneau
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- **2025-02-21** Referred to the Senate `referral`
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- **2025-02-20** Third reading: passed; Roll Call 239: yeas 68, nays 26 `passage, reading-3, reading-3`
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- **2025-03-03** First reading: referred to Committee on Health and Provider Services `reading-1, referral-committee`
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- **2025-03-20** Committee report: do pass adopted; reassigned to Committee on Appropriations `committee-passage, referral-committee`
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- **2025-04-10** Committee report: amend do pass, adopted `committee-passage`
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- **2025-04-10** Senator Randolph added as cosponsor
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- **2025-04-14** Second reading: amended, ordered engrossed `reading-2`
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- **2025-04-14** Amendment #23 (Garten) prevailed; Division of the Senate: yeas 34, nays 12 `amendment-passage`
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- **2025-04-14** Amendment #15 (Bohacek) prevailed; voice vote `amendment-passage`
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- **2025-04-14** Amendment #17 (Bohacek) prevailed; voice vote `amendment-passage`
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- **2025-04-14** Amendment #9 (Yoder) failed; Roll Call 412: yeas 13, nays 36 `amendment-failure, failure`
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- **2025-04-15** Third reading: passed; Roll Call 422: yeas 29, nays 19 `passage, reading-3, reading-3`
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- **2025-04-15** Senator Johnson T removed as third sponsor
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- **2025-04-16** Returned to the House with amendments `receipt`
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- **2025-04-17** Motion to dissent filed `filing`
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- **2025-04-21** House advisors appointed: Barrett, Lehman, McGuire, Garcia Wilburn, Gore and Porter
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- **2025-04-21** Senate conferees appointed: Garten and Yoder
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- **2025-04-21** Senate advisors appointed: Ford J.D., Busch and Charbonneau
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- **2025-04-21** House dissented from Senate amendments
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- **2025-04-21** House conferees appointed: Carbaugh and Shackleford
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- **2025-04-24** Senator Charbonneau removed as advisor
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- **2025-04-24** Senator Yoder removed as conferee
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- **2025-04-24** Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 528: yeas 37, nays 13
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- **2025-04-24** Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 566: yeas 68, nays 23
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- **2025-04-24** CCR # 1 filed in the Senate `filing`
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- **2025-05-06** Public Law 216 `became-law`
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- **2025-04-24** CCR # 1 filed in the House `filing`
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- **2025-05-06** Signed by the Governor `executive-signature`
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- **2025-04-29** Signed by the President of the Senate `passage`
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- **2025-04-24** Representative Barrett removed as advisor
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- **2025-04-24** Representative Barrett added as conferee
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- **2025-04-24** Representative Shackleford removed as conferee
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- **2025-04-24** Senator Charbonneau added as conferee
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- **2025-04-28** Signed by the President Pro Tempore `passage`
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- **2025-04-25** Signed by the Speaker `passage`
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## Source
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OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/13ad2978-3bab-4983-8f1c-770ecc5638f5`. Confidence: reported (aggregated from official Indiana legislature records).
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