INDIANAPOLIS, Ind. (WOWO) — In a move toward healthcare transparency, Governor Mike Braun and the Indiana Department of Health (IDOH) have released the state’s inaugural review of Direct-to-Employer (DTE) healthcare arrangements.
The 2025 report reveals that major nonprofit hospitals across the state are meeting strict price caps, offering Indiana businesses a more affordable alternative to traditional insurance models.
Under Indiana law, nonprofit hospital systems offering direct-to-employer plans must prove their rates remain at or below 260% of Medicare rates. The IDOH review confirmed that all participating health systems—including IU Health, Ascension St. Vincent, Community Health Network, Franciscan Health, and Parkview Health—successfully met this threshold.
Governor Braun said the report as a win for the state’s economy.
“When employers can access stable, affordable healthcare, they can invest more confidently in their workers and communities,” Braun said. “Direct-to-employer contracting is a smart, forward-looking option that strengthens Indiana’s competitive edge.”
A Shift Away from Traditional Insurance
Direct-to-Employer (DTE) contracting allows businesses to negotiate directly with hospital systems rather than going through a middleman insurance provider. This model is designed to provide more predictable costs and greater transparency into what hospitals actually charge for services.
Health and Human Services Secretary Gloria Sachdev noted that many hospitals are actually pricing their services well below the state-mandated cap, giving businesses more room to manage their yearly spending.
Local Impact: From Schools to Universities
The report highlights that these arrangements aren’t just for large corporations. Ascension St. Vincent’s “Employer Solutions” program currently serves over 300 public safety agencies and 125 public schools.
Amy Boyle, Vice President of Human Resources at Purdue University, says the model is vital for recruitment and retention.
“Greater transparency into hospital pricing helps institutions like ours design plans that support employee well-being,” Boyle said. “Direct-to-employer arrangements have been a valuable strategy in stabilizing long-term healthcare costs.”
What This Means for Indiana Businesses
The Indiana Chamber of Commerce is encouraging its members to review the data, citing rising healthcare costs as one of the top challenges for local businesses. The Chamber suggests that the expansion of DTE options provides a clear pathway to affordability and better alignment between healthcare providers and the workforce.
The full 2025 Direct-to-Employer Review is now available to the public on the Indiana Department of Health’s website.
