Report: Indiana’s Hospital Systems Lowered Prices in 2024

A new state‑commissioned analysis shows Indiana’s five largest nonprofit hospital systems reduced their commercial prices by nearly 7 percentage points on average in 2024 compared to the year before, marking one of the most significant year‑over‑year improvements to-date in the effort to make healthcare more affordable for Hoosiers.

According to the report, each system’s prices as a percentage of full Medicare declined from 2023 to 2024, demonstrating broad, system-wide progress across the state.

In fact, the commercial prices of Ascension St. Vincent, Community Health Network, Franciscan Health, IU Health, and Parkview Health averaged 252% of Medicare in 2024—a full 33 percentage points below the state benchmark set by the Indiana General Assembly.

The findings come from a November 2025 report issued by the Indiana Department of Insurance (IDOI) and conducted by Milliman. The study was required under House Enrolled Act 1004 (2023), which directed IDOI to independently evaluate hospital commercial prices and compare them to a benchmark of 285% of Medicare established by the Indiana General Assembly. The goal was to provide lawmakers and the public with a transparent, data‑driven assessment of hospital pricing based on actual amounts allowed by insurers.

Meanwhile, several national rankings—including independent analyses by Wallethub, Forbes, and the Kaiser Family Foundation—have also shown steady declines in health care costs and lower prices among Indiana hospitals compared to other states.

“Indiana hospitals are listening and responding to the needs of Hoosier patients,” said Scott B. Tittle, president of the Indiana Hospital Association (IHA). “One study after another shows the consistent progress hospitals are making to move prices in the right direction. With robust data from credible sources, our legislators can make informed policy decisions that improve affordability without jeopardizing access to care in the communities they serve.”

With hospital prices declining, Tittle emphasized that insurance companies must now pass these savings along to employers and families—particularly as health insurance premiums continue to rise and strain household budgets.

“Our hospitals are doing their part,” Tittle said. “It’s time for insurers to do theirs, and we look forward to the General Assembly helping to guarantee those savings are passed on to Hoosiers.”

Hospitals remain committed to affordability despite financial strain

While achieving positive gains on affordability, a recent analysis by Kaufman Hall shows Indiana hospitals continue to face significant financial challenges, operating with razor‑thin margins—as low as 1.9% in 2025 through August, compared to the national median of 2.6%.

These pressures stem from historically low reimbursement rates from Medicare and Medicaid, rising labor and supply costs driven by inflation and tariffs, and increasing payment delays and denials from commercial insurers.

Tittle also noted that Indiana’s physician reimbursement rates—set by commercial insurers—are among the lowest in the country, requiring hospitals to subsidize physician practices at significant levels to ensure Hoosiers can access essential services. Because physician and facility rates operate within a shared financial ecosystem, it is critical that total hospital pricing reflects both sides of the care delivery model, Tittle said.

Despite these challenges, Indiana’s nonprofit hospital systems continue to prioritize affordability and transparency.

“The data is clear: Indiana hospitals are lowering prices while navigating some of the most difficult financial conditions in recent history,” Tittle said. “Our hospitals remain committed to delivering high‑quality, accessible, and affordable care for every Hoosier.”