Signed by Governor Mike Braun

Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that establishes a hospital facility fee excise tax imposed when facility fees exceeds 265% of Medicare facility fees in Indiana.

Highlights:

• Establishes a hospital facility fee excise tax imposed when a hospital charges a facility fee that exceeds 265% of the hospital’s Medicare facility fee in Indiana (Sec. 8). 

• Requires the excise taxes to be used for the lawful purposes of the Medicaid program and for developing the health care workforce serving rural areas of Indiana (Sec. 11). 

• Establishes a state directed payment program for hospitals and a managed care assessment fee, subject to the approval of the United States Department of Health and Human Services (Sec. 19). 

• Defines a “nonprofit hospital” as a hospital organized as a nonprofit corporation or a charitable trust under state laws (Sec. 12). 

• Requires nonprofit hospitals to provide the department of insurance a report including data on all billed services and items and their respective Medicare reimbursement rates, before November 1 of each state fiscal year (Sec. 12). 

• Requires that a nonprofit hospital that charges an amount for a service or item over 300% of its modified Medicare reimbursement rate to forfeit its status as a nonprofit hospital (Sec. 12). 

• Authorizes hospitals to attempt to reestablish its status as a nonprofit hospital (Sec. 12). 

• Specifies that critical access hospitals are exempt from the provisions of this bill (Sec. 5). 

• Specifies that the provisions of this bill shall take effect on July 1, 2025 (Sec. 1). 

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that establishes a hospital facility fee excise tax imposed when facility fees exceeds 265% of Medicare facility fees in Indiana.

Highlights:

• Establishes a hospital facility fee excise tax imposed when a hospital charges a facility fee that exceeds 265% of the hospital’s Medicare facility fee in Indiana (Sec. 8). 

• Requires the excise taxes to be used for the lawful purposes of the Medicaid program and for developing the health care workforce serving rural areas of Indiana (Sec. 11). 

• Establishes a state directed payment program for hospitals and a managed care assessment fee, subject to the approval of the United States Department of Health and Human Services (Sec. 19). 

• Defines a “nonprofit hospital” as a hospital organized as a nonprofit corporation or a charitable trust under state laws (Sec. 12). 

• Requires nonprofit hospitals to provide the department of insurance a report including data on all billed services and items and their respective Medicare reimbursement rates, before November 1 of each state fiscal year (Sec. 12). 

• Requires that a nonprofit hospital that charges an amount for a service or item over 300% of its modified Medicare reimbursement rate to forfeit its status as a nonprofit hospital (Sec. 12). 

• Authorizes hospitals to attempt to reestablish its status as a nonprofit hospital (Sec. 12). 

• Specifies that critical access hospitals are exempt from the provisions of this bill (Sec. 5). 

• Specifies that the provisions of this bill shall take effect on July 1, 2025 (Sec. 1). 

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that establishes a hospital facility fee excise tax imposed when facility fees exceeds 265% of Medicare facility fees in Indiana.

Highlights:

• Establishes a hospital facility fee excise tax imposed when a hospital charges a facility fee that exceeds 265% of the hospital’s Medicare facility fee in Indiana (Sec. 8). 

• Requires the excise taxes to be used for the lawful purposes of the Medicaid program and for developing the health care workforce serving rural areas of Indiana (Sec. 11). 

• Establishes a state directed payment program for hospitals and a managed care assessment fee, subject to the approval of the United States Department of Health and Human Services (Sec. 19). 

• Defines a “nonprofit hospital” as a hospital organized as a nonprofit corporation or a charitable trust under state laws (Sec. 12). 

• Requires nonprofit hospitals to provide the department of insurance a report including data on all billed services and items and their respective Medicare reimbursement rates, before November 1 of each state fiscal year (Sec. 12). 

• Requires that a nonprofit hospital that charges an amount for a service or item over 300% of its modified Medicare reimbursement rate to forfeit its status as a nonprofit hospital (Sec. 12). 

• Authorizes hospitals to attempt to reestablish its status as a nonprofit hospital (Sec. 12). 

• Specifies that critical access hospitals are exempt from the provisions of this bill (Sec. 5). 

• Specifies that the provisions of this bill shall take effect on July 1, 2025 (Sec. 1). 

Full Bill Text