News Releases

Zay: State legislators and Employers’ Forum of Indiana discuss rising health care costs

STATEHOUSE (June 7, 2019) — State Sen. Andy Zay (R-Huntington) and members of the Indiana General Assembly recently met with the Employers’ Forum of Indiana to discuss the rising health care costs across the state.

The Employers’ Forum of Indiana is an employer-led health care coalition of employers, physicians, hospitals, health plans, public health officials and other stakeholders in Indiana.

In 2017, the Employers’ Forum of Indiana hired the RAND Corporation, a research organization that specializes in public policy, to conduct two studies on Indiana’s rising health care costs.

The first study revealed there is a wide variation in the average health care costs assessed to Hoosiers.

Key findings from the study include:

• Prices vary widely, ranging from less than 200% to as much as 370% of what Medicare pays;

• The state’s largest hospital systems generally command the highest prices;

• The average price for inpatient hospital care in Indiana is 217% of Medicare rates, compared to 175% nationally;

• The average price for outpatient care in Indiana is 358% of Medicare rates – national data is not available; and

• The relative price of hospital care in Indiana rose sharply over the three-year study period.

The second study revealed Indiana had the highest health care prices, when compared to 25 other states.

“This data is alarming, and sheds light on a significant issue in our state,” Zay said. “I was fortunate to have attended the Employers’ Forum discussion earlier this week, and we are working on finding a solution to help cut some of these costs. Action must be taken now so Hoosiers have access to care they might need in the future.”

The Interim Study Committee on Financial Institutions and Insurance will evaluate health care cost increases this summer and fall.


Click here for a high-resolution photo of Sen. Zay.