Indiana 2025 Legislative Session Advances Budget, Tax Relief, and Medicaid Cost Controls

The Indiana Senate has concluded the 2025 legislative session with a focus on property tax relief, Medicaid cost containment, health care cost reduction, water resource management, and fiscal integrity.

A balanced state budget was passed, aiming to fund essential government services over the next biennium while preserving funding for K-12 education and the Medicaid program. Property tax relief measures will provide $1.3 billion in savings for homeowners over three years, balancing taxpayer needs with local government funding requirements.

Medicaid reforms target cost control through improved eligibility checks and adjustments to the Healthy Indiana Plan amid a $5 billion spending increase over four years, representing efforts to manage rising Medicaid expenditures. Health insurance-related legislation requires third-party administrators and pharmacy benefit managers to prioritize the financial interests of health plan sponsors, aiming to reduce costs for employers.

Additionally, water resources management laws permit certain major water-transfer projects under controlled conditions to ensure continued access. Lastly, enhanced government contract oversight and efficiency measures are introduced to uphold fiscal responsibility and prudent state spending.