(INDIANAPOLIS) -- Commercial hospital prices dropped across Indiana in 2024, according to a new state-commissioned study examining health care affordability.
The analysis, released by the Indiana Department of Insurance and conducted by consulting firm Milliman, found that commercial prices at Indiana's five largest nonprofit hospital systems fell by nearly seven percentage points compared to 2023. Prices were measured as a percentage of Medicare reimbursement.
The report shows Ascension St. Vincent, Community Health Network, Franciscan Health, IU Health and Parkview Health averaged commercial prices equal to 252 percent of Medicare in 2024. That figure is well below the 285 percent benchmark set by the Indiana General Assembly.
The study was required under House Enrolled Act 1004, passed in 2023, which directed the Department of Insurance to independently evaluate hospital pricing using insurer-allowed amounts and make the findings public.
Hospital leaders say the results show progress on affordability. The Indiana Hospital Association cited the report as evidence that systems are responding to legislative pressure while continuing to provide access to care.
The findings come as national rankings from organizations including WalletHub, Forbes and the Kaiser Family Foundation have shown Indiana hospitals with comparatively lower costs than many other states.
Despite the reductions, hospitals continue to report financial strain. Industry analyses show Indiana hospitals operating on thin margins, citing low Medicare and Medicaid reimbursement rates, rising labor and supply costs, and delayed payments from insurers.
State officials say the report will help lawmakers evaluate future health care policy as affordability and access remain key issues at the Statehouse.