STATEHOUSE (July 8, 2025) – Gov. Mike Braun recently ceremonially signed a House Republican priority bill into law co-authored by State Rep. Julie McGuire (R-Indianapolis) 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. McGuire 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.
"For too long Hoosiers have endured inflated costs from some of the state's largest hospital networks," McGuire said. "Having a nonprofit status means these health care providers are supposed to reinvest most of their profits into their operations and serve the public good. This new law will help ensure those who aren't doing that and pricing their services accordingly will no longer be exempt from paying taxes."
McGuire 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. Julie McGuire (R-Indianapolis) represents House District 93,
which includes a portion of Marion County.
Click here to download a high-resolution photo.
