STATEHOUSE (June 19, 2025) – Gov. Mike Braun recently ceremonially signed into law legislation co-authored by State Rep. Bob Morris (R-Fort Wayne) to encourage patients to shop for more cost-effective treatment options.
A RAND study found that health care consumers frequently lack access to transparent pricing for medical services, with wide variation in rates negotiated by insurance companies. Paying in cash for treatment has become more common, with these costs often lower than insurers' negotiated rates. However, Morris said these direct payments often don't count toward a person's annual health insurance deductible or out-of-pocket maximum costs.
"When patients can't compare prices, they often pay more than necessary and face rising insurance premiums," Morris said. "Hoosiers deserve to have the tools to make informed choices and find high-quality, affordable care just like they do with other everyday expenses."
House Enrolled Act 1604 requires insurance companies to apply cash payments for health services to an individual's annual policy deductible and out-of-pocket maximum costs. Morris said this shift will ensure that patients who seek more affordable care options are not penalized while also saving providers time and money on paperwork and insurance negotiations and encouraging them to make their prices competitive to attract more patients.
Additionally, the law requires health insurers to establish a clear and straightforward process for individuals to claim credits for cash payments and either publish their average discounted rates or refer consumers to typical rates listed on Indiana's All Payer Claims Database.
To learn more about HEA 1604 and other new laws signed by the governor, click here.
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State Rep. Bob Morris (R-Fort Wayne) represents House
District 84, which includes a portion of Allen County
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