STATEHOUSE (June 19, 2025) – Gov. Mike Braun recently ceremonially signed a House Republican priority bill into law authored by State Rep. Martin Carbaugh (R-Fort Wayne) that curbs rising health care costs and ensures that nonprofit hospitals are operating in the public interest.
Statistics show that among the "big five" nonprofit hospital networks in Indiana, profit margins since 2017 ranged from 9-17 percent while the national average was 3 percent. Carbaugh said this law targets high prices at nonprofit hospitals and strengthens transparency to help drive down health care costs for Hoosiers.
House Enrolled Act 1004 will direct the Office of Management and Budget to study hospital prices using 2023-2024 data to set a statewide average price benchmark for hospital services. Large nonprofit hospitals with over $2 billion in revenue must align their average prices with this benchmark by 2029 or risk losing their nonprofit status.
"This newly signed law ensures that nonprofit hospitals remain accountable to their patients and help reduce the financial strain on Hoosiers who are already burdened by high medical costs," Carbaugh said. "House Enrolled Act 1004 sends a clear message: If you operate as a nonprofit getting tax-exempt status in Indiana, your prices must reflect that, or you will lose the privilege and pay your fair share."
Carbaugh said the law restructures Indiana’s hospital funding system to better direct federal Medicaid dollars and strengthen rural health care. It also creates a new Managed Care Assessment Fee to help fund Medicaid without relying as heavily on the state’s general fund.
To learn more about HEA 1004 and other new laws signed by the governor, click here.
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State Rep. Martin Carbaugh (R-Fort Wayne) represents House District 81,
which includes a portion of Allen County.
Click here to download a high-resolution photo.
