State Rep. Barrett's legislation to reduce health care costs, combat fraud heads to governor

Posted by: Amanda Schreiber  | Thursday, May 1, 2025

STATEHOUSE (May 1, 2025) – The Indiana General Assembly passed State Rep. Brad Barrett's (R-Richmond) legislation to reduce health care costs, improve transparency and empower patients across Indiana. With recent amendments, Barrett said the legislation now includes stronger patient protections and expanded oversight measures.

A key provision of this legislation strengthens site of service billing standards for the state's largest non-profit hospitals, protecting patients from unnecessary facility fees.

“This bill is about putting Hoosier patients first by making sure they are informed, protected and treated fairly," Barrett said. "By increasing transparency, preventing surprise billing and holding providers accountable, we are working to reduce health care costs and empower patients. These reforms reflect real concerns we’ve heard from Hoosiers, and I’m glad we are making progress to improve our health care system.”

The bill also enhances price transparency, requiring labs and diagnostic imaging centers to publicly post service prices. Patients will be provided with itemized bills and clear service codes, giving them tools to compare costs and make more informed decisions.

To help Hoosiers understand their financial obligations, House Enrolled Act 1003 requires good faith estimates for health care services to be provided at least two business days before the health care services are scheduled to be provided.

Additionally, the legislation prohibits insurers from denying a claim for reimbursement on the basis that the referring provider is an out-of-network direct primary care provider or independent physician.

In an effort to fight Medicaid fraud, the legislation strengthens the Medicaid Fraud Control Unit’s authority to investigate provider, insurer and billing fraud. The Attorney General will now enter into data-sharing agreements with state agencies to improve fraud prevention. MFCU investigators are designated as law enforcement officers under the bill for stronger enforcement capabilities.

Barrett said the legislation also reinforces Indiana’s Right to Try law, expanding access to investigational treatments for patients with life-threatening conditions, and aims to increase transparency in accessing medical records.  

HEA 1003 passed the House and Senate and now heads to the governor for consideration as a new law. For more information, visit iga.in.gov.

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State Rep. Brad Barrett (R-Richmond) represents House District 56,
which includes Wayne County and portions of Henry County.
Click here to download a high-resolution photo.