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Yet somehow we aren’t talking anout the large health insurance companies! This needs to include them.
The advancement of House Bill 1004 is a direct assault on Indiana’s nonprofit hospitals, threatening the very foundation of healthcare across the state. If enacted, this legislation will devastate healthcare accessibility, particularly in rural communities, leading to hospital closures, massive job losses, and the dismantling of crucial community health initiatives that have taken decades to establish. The bill’s reliance on the flawed RAND report, a study that lacks a comprehensive understanding of the complexities of hospital financing, demonstrates a reckless approach to policymaking that could irreparably damage Indiana’s healthcare system.
Unlike any other industry, hospitals are required to provide services first and then wait to be told how much they will be reimbursed, often at a loss. Medicare and Medicaid, which account for over 50% of patient volume, reimburse at rates that do not even cover the cost of care. Meanwhile, private insurers continue to cut payments while simultaneously increasing premiums for their customers and raking in record profits. Hospitals do not have the luxury of 30-60% margins like pharmaceutical and medical device companies; instead, many county hospitals operate on razor-thin or even negative margins. Penalizing these hospitals further with an arbitrary tax will accelerate closures, leaving entire communities without essential healthcare services.
This bill does not address the root causes of high healthcare costs, such as insurer-driven pricing manipulations and pharmaceutical price gouging. Instead, it scapegoats’ hospitals, institutions that are often the last line of defense in ensuring patient care. Stripping hospitals of their nonprofit status or imposing crippling taxes will force them to shut down essential services, leaving Hoosiers with fewer healthcare options and worsening health outcomes. Any progress made in addressing Social Determinants of Health (SDOH) and community wellness will be swiftly undone, pushing Indiana’s most vulnerable populations further into healthcare deserts.
The people of Indiana must take action now. Contact your state representatives and senators and demand they oppose HB 1004 before it’s too late. If this bill becomes law, it will not be long before hospitals across the state shut their doors, leaving communities without emergency rooms, maternity care, cancer treatments, and other critical services. The choice is clear: protect Indiana’s healthcare system or watch it collapse under the weight of reckless legislation.