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HB1385 • 2026

A BILL FOR AN ACT to amend the Indiana Code concerning health.

A BILL FOR AN ACT to amend the Indiana Code concerning health.

Healthcare Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Brad Barrett
Last action
2026-01-08
Official status
Introduced House Bill (H)
Effective date
Not listed

Plain English Breakdown

The official summary does not provide specific details about the new requirements or deadlines for conducting a statewide average rate study, only that they are updated and amended.

Indiana Health Care Reimbursement Act

This act changes Medicaid reimbursement rates for hospitals, sets new rules for hospital fees, and updates requirements for a pricing study.

What This Bill Does

  • Requires the development of programs to increase Medicaid reimbursement rates for hospitals.
  • Specifies that state directed payment program reimbursement rates must be at least Medicare reimbursement rates.
  • Prohibits using funds from the incremental hospital fee fund to pay for Medicaid expenses.
  • Changes how collected hospital assessment fees can be used.
  • Updates requirements and deadlines for conducting a statewide average rate study.

Who It Names or Affects

  • Hospitals in Indiana
  • People who receive Medicaid services

Terms To Know

Medicaid reimbursement rates
The amount of money the government pays hospitals for treating people on Medicaid.
Incremental hospital fee fund
A special fund created from fees charged to hospitals that cannot be used for certain purposes, like funding Medicaid.

Limits and Unknowns

  • The bill does not specify when the new requirements will take effect.
  • It is unclear how much money these changes will save or cost.

Bill History

  1. 2026-01-08 House

    Authored by Representative Barrett

  2. 2026-01-08 House

    First reading: referred to Committee on Public Health

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning health.
Various hospital matters.

Current Bill Text

Read the full stored bill text
A BILL FOR AN ACT to amend the Indiana Code concerning health.

Various hospital matters.

Requires (rather than allows) the development of programs designed to increase Medicaid reimbursement. Specifies that the reimbursement rates for a state directed payment program must be at least the Medicare reimbursement rates. Requires the office of the secretary of family and social services to perform a reconciliation of the capitation attributable to the incremental hospital fee. Prohibits money in the incremental hospital fee fund from being used to fund Medicaid. Amends the permissible use of funds collected under the hospital assessment fee. Removes language that allowed the hospital assessment fee to be used to fund a state directed payment program that depended upon the collection of the managed care assessment fee. Changes the definition of "prices" concerning the hospital statewide average rate study and pricing (study). Amends the requirements to conduct the study and the date by which the study must be completed.