Indiana Hospitals Make Progress on Health Care Cost Reductions and Transparency

Indiana hospitals are making measurable progress in reducing health care costs and enhancing affordability for patients statewide, according to recent national rankings and industry reports. WalletHub's 2025 health care cost rankings placed Indiana 8th nationally, a significant improvement from 15th in 2021, reflecting lower medical visit costs, inpatient hospital expenses, dental visit fees, and more manageable insurance premiums. This advancement aligns with hospital-led initiatives focused on cost containment and increased operational efficiency across Indiana's health system. In addition to cost improvements, Indiana ranks 20th in access to health care services and 36th in health care outcomes, according to WalletHub data considering indicators such as infant and maternal mortality rates and immunization coverage. The Indiana Hospital Association (IHA) also referenced a 2024 Forbes report ranking Indiana 24th for health care costs, marking notable progress from previous years despite ongoing challenges related to primary care physician shortages and hospital care quality. Employer-based health insurance premiums in Indiana have remained at or below the national average since 2020, supported by decreasing hospital costs, benefiting both families and businesses. RAND Corporation analyses reinforce this downward cost trend, with Indiana moving from the most expensive state in 2019 to ninth in the 2023 report. While IHA has previously expressed concerns about the RAND methodology, consistent improvement across multiple studies suggests sustainable progress. State legislation played a significant role in these developments. House Enrolled Act 1004 imposes price caps on services at major nonprofit hospital systems, effective through mid-2027, tying hospital non-profit status to compliance with cost controls and financial reporting transparency. Concurrently, House Enrolled Act 1003 enhances medical billing transparency by standardizing patient price estimates, billing practices, and prohibiting surprise fees. Overall, Indiana's efforts illustrate a multi-faceted approach involving regulatory oversight, hospital collaboration, and enhanced transparency tools aimed at controlling health care costs without compromising service quality. These measures contribute to Indiana's positioning among the ten most affordable states for health care and reflect ongoing priorities in managing financial accountability and access in the state's health sector.