Indiana is continuing its push to rein in healthcare costs and expand access with a set of new initiatives that focuses on affordability and transparency as well as availability in the state’s most underserved areas.
The healthcare reform actions developed over the course of the first quarter of this year address some of the most persistent challenges in the state’s healthcare system. Key priorities include requiring healthcare facilities to provide more transparency about the cost of care for patients and also provide options for payment that ease the burden of accumulating medical debt and prevent credit-damaging measures by sending bills to collection.
Gov. Mike Braun framed the effort as a broader push to improve both access and accountability across the healthcare system, emphasizing that affordability remains a central concern for residents.
“Healthcare costs and medical debt are a major burden on too many Hoosier families, and I am taking action to make healthcare in Indiana more affordable, transparent, and accessible,” he said. “We are protecting patients from unfair medical debt collection, requiring hospitals to connect patients with payment assistance before sending bills to collections, and strengthening the pipeline of future doctors serving rural Indiana. These are concrete steps to fix the broken healthcare system making it harder for Hoosiers to make ends meet at the kitchen table.”
Three New Reforms
Under the new policy, the reforms will now require hospitals to supply patients with information about payment assistance programs and assist in connecting those patients with those programs. Another reform bill addresses medical debt protections, prohibiting hospitals from seeking collection routes without first complying with the state’s requirements.
A third initiative expands the focus beyond cost. HEA 1358 requires that medical students be exposed to work in rural areas. This move ensures that students receive practical experience with exposure to addressing the healthcare needs within those regions and drives more interest in serving the areas.
These new actions build on a healthcare reform agenda that has been developing for two years, including during Braun’s campaigning months and well into his administration in 2025. In June last year, Indiana advanced legislation aimed at increasing hospital pricing transparency and eliminating moves that drive up the cost for employers and residents. A priority of the earlier legislation included requirements to allow residents to more easily understand what they would owe for healthcare before those treatments were delivered.
Supporting Research
A shortage of primary care providers in rural areas has emerged as an urgent issue in Indiana. Recent research from the Richard M. Fairbanks School of Public Health reinforces the importance of addressing these. In the report, the school notes that “increasing the use of primary care and preventative services can improve health outcomes and reduce healthcare costs.” The findings point to underutilization of routine care as a key driver of avoidable spending and poorer long-term health outcomes.
The alignment between the state’s latest policy pushes and the research in Fairbank’s report reinforces the view that prioritizing access to primary care, along with price transparency, is an effective way to reduce healthcare costs.
The addition of medical debt and affordability measures helps break through the challenging complexities of healthcare. Even if healthcare is available, cost uncertainty and financial hardships can deter residents from seeking treatment. Addressing all the concerns is essential in attacking the problem at all angles. The strategic framework formed by the new measures creates a more cohesive solution to the problem.
As the changes continue to unfold, their impact will expand beyond patients and providers. Employers and insurers will also need to adapt to the healthcare landscape that is increasingly becoming reshaped by transparency and preventive care priorities.
