Addressing Indiana’s Healthcare Affordability Crisis

Hoosiers are facing unprecedented economic challenges – no one has been spared from a rising grocery bill, increased rent and utility bills, and even higher costs for car insurance. Combined with rising healthcare costs in Indiana, people are faced with tough decisions. Families are delaying or skipping care because of cost concerns – a trend that impacts community health, workforce productivity, and the local economy. It’s time to address the healthcare affordability challenge head on.

Why healthcare costs keep climbing

The first step in addressing Indiana’s healthcare affordability crisis is to recognize why it’s happening. Many factors are driving increases in healthcare costs – these are some of the biggest factors:

• Aging population – More older adults need more complex and costly care.
• Chronic conditions – Obesity, diabetes, and heart disease are examples of conditions that are becoming more common AND more expensive to treat.
• Drug costs – They continue to rise, with prices of existing drugs increasing at rates faster than inflation and new drugs starting at record-high prices.
• Provider consolidation – When healthcare providers merge, it often leads to less competition and higher prices.
• Fraud, waste, and abuse – The complexity of our system makes it easier to abuse the system.
• Legislation – Recent federal and state changes continue to mean added costs in the system – year after year.

As is well documented, we have work to do in Indiana to build healthier lifestyles. Our rates for adult smoking and obesity are higher than most states in the country, and we’re middle of the pack in terms of physical activity and exercise. These lifestyle factors drive higher use of the healthcare system, which impacts healthcare affordability for all Hoosiers.

Who Can Make a Difference

Addressing multi-factor healthcare affordability contributors requires multi-factor solutions. That means all members of the healthcare system and beyond must act. Health plans, hospitals and health systems, healthcare providers, pharmaceutical companies, lawmakers, employers, and individuals all need a seat at the table.

Healthcare providers must focus on value not volume, leaning into value-based care models that incentivize positive healthcare outcomes. Lawmakers must seek evidence-based policy solutions that are targeted to address the true causes of the affordability crisis. Individuals must engage in their healthcare journey, investing time to understand their healthcare coverage and benefits so they can use the tools, programs and resources available, knowing that there is support to help navigate options and costs.

How We’re Making Healthcare More Affordable:

At Anthem Blue Cross and Blue Shield, we’re working toward solutions to address affordability on behalf of our members in Indiana. Affordability is central to improving health outcomes and driving economic resilience. Rising costs ripple through businesses and communities, affecting productivity and long-term growth. That’s why we are committed to solutions that go beyond traditional cost control measures.

Given the contributing factors, here are some of the things we’re doing to make healthcare more affordable for Hoosiers and their employers:

• Helping seniors manage complex care so they avoid unnecessary hospital stays.
• Offering disease management programs that help members better control chronic conditions.
• Negotiating lower prices for prescription drugs, especially expensive specialty drugs.
• Working with providers to pay them based on the quality of care they deliver, not the number of services they provide.
• Giving members rewards through programs like SmartShopper when they use our tools to compare prices.
• Leveraging technology to find potentially fraudulent activity and improper claims.
• Advocating for policies at both the state and federal levels that support affordability and access.

We’re proud of our collaborations with Indiana’s top health systems to moderate and even lower cost trends. At the same time, we’ve made strategic investments in increasing payment rates for doctors, particularly primary care physicians, who play a critical role in maintaining health, preventing illness, and managing chronic conditions.

Our strategy blends proven tools with fresh thinking: expanding access to high-quality care, simplifying benefit design, preventing fraud and waste, and addressing the full spectrum of health – physical, behavioral, and social drivers of health.

Looking Ahead

Historically, health plans focused on paying for care and controlling costs. Today, we recognize that most factors influencing health occur outside medical settings. Social drivers like housing, nutrition, and behavioral health play a critical role – and overlooking them only compounds costs. This is why it is so important that stakeholders across Indiana come together.

By working together – we can build a more affordable, accessible, and effective healthcare system for every family in Indiana.

Learn more about our efforts at anthem.com/affordabilityinindiana.