INDIANAPOLIS, IND. (WOWO) Indiana’s largest nonprofit hospital systems lowered their commercial prices in 2024, according to a new state-commissioned analysis evaluating health care affordability.
The study, released by the Indiana Department of Insurance and conducted by consulting firm Milliman, found that commercial prices at the state’s five largest nonprofit systems declined by nearly seven percentage points compared to 2023. Each system saw prices fall when measured as a percentage of Medicare reimbursement.
The report shows Ascension St. Vincent, Community Health Network, Franciscan Health, IU Health and Parkview Health averaged commercial prices equal to 252 percent of Medicare in 2024. That figure is 33 percentage points below the benchmark of 285 percent set by the Indiana General Assembly.
The analysis was required under House Enrolled Act 1004, passed in 2023, which directed the Department of Insurance to independently evaluate hospital commercial pricing and provide lawmakers and the public with a data-driven assessment based on insurer-allowed amounts.
The Indiana Hospital Association cited the findings as evidence of system-wide progress. Association president Scott B. Tittle said the report shows hospitals are responding to calls for greater affordability while maintaining access to care.
The report also comes as several national rankings, including analyses by WalletHub, Forbes and the Kaiser Family Foundation, show Indiana hospitals with lower costs compared to other states.
Despite the price reductions, hospitals continue to face financial pressures. According to a Kaufman Hall analysis cited by the association, Indiana hospitals operated with margins as low as 1.9 percent in 2025 through August, below the national median. Hospitals cite low Medicare and Medicaid reimbursement rates, rising labor and supply costs and increased payment delays from insurers.
The Indiana Hospital Association says hospitals remain committed to affordability and transparency as lawmakers continue to evaluate health care policy in the state.
