Indiana's 5 Largest Health Systems Meet 260% Medicare Price Benchmark, but Costs Stay High
Updated
Updated · Indianapolis Business Journal · Jul 17
Indiana's 5 Largest Health Systems Meet 260% Medicare Price Benchmark, but Costs Stay High
3 articles · Updated · Indianapolis Business Journal · Jul 17
Summary
Indiana’s April 2026 report found all five largest nonprofit health systems met House Enrolled Act 1004 benchmarks, including a requirement to offer direct-to-employer plans at or below 260% of Medicare.
Yet employers still lack evidence they are paying less, and a hospital-only measure shows those five systems averaged 293% of Medicare in 2024, versus 252% when physician practices are blended in.
Consolidation remains the main driver: hospitals involved in 2005-2015 mergers posted inpatient price increases 13.2% above non-merged peers, while Indiana commercial hospital prices rank ninth highest nationally.
Indiana’s spending growth underscores the pressure on employers and workers—per-capita health spending rose 48% from 2011 to 2020, and family employer-sponsored coverage averages $24,725 a year, about 34% of median household income.
The 2025 law aims to keep major systems at or below a statewide weighted average by 2029 to preserve nonprofit status, but the report argues deeper policy changes are still needed in highly concentrated local markets.