Submitted
The Indiana Hospital Association (IHA), Indiana State Medical Association (ISMA), and Indiana Physicians Health Alliance (IPHA) commend the Indiana Senate Insurance and Financial Institutions Committee for advancing Senate Bill (SB) 189 on Wednesday, Jan. 21, which passed by a vote of 6-1.
Baldwin
Authored by Chairman Scott Baldwin (R-Noblesville), SB 189 represents a critical step toward protecting patient access to timely, high-quality care and curbing unfair health insurer practices within Indiana’s health care ecosystem. The legislation prohibits insurance companies from imposing financial penalties on providers or facilities when care involves an out-of-network provider – ensuring patients can continue to access the care they need without unnecessary disruptions.
The measure comes at a critical time as Elevance Health implemented its “Facility Administrative Policy: Use of a Nonparticipating Care Provider” on Jan. 1, 2026. Under this policy, hospitals face a 10 percent reimbursement cut if any out-of-network provider participates in care.
Hospitals work to ensure care is provided by in-network physicians, but at times, the best physician group to provide a certain service is out-of-network, many times because the physician group cannot sustain the inequitable rates being offered by the insurer. Health care leaders warn that Elevance’s policy will harm patients by delaying care, forcing them to travel farther, and potentially eliminating service lines – especially in rural and underserved communities.
“This legislation is about putting patients first,” IHA President Scott B. Tittle said. “SB 189 provides a necessary safeguard against harmful insurer practices that put patients in the middle. Patients are already protected from surprise medical bills under the No Surprises Act, meaning Elevance’s policy will not save patients money; it will only benefit Elevance at the expense of patients, providers, and access to care.”
Building on those concerns, physician leaders warn the policy will have far-reaching consequences for medical practices.
“Doctors already navigate complex networks and heavy administrative burdens,” said Dr. Ryan Singerman, a family physician and president of ISMA. “This adds even more pressure, forcing physicians into unfavorable contracts that may not sustain their practices.”
The impact is significant for independent physicians, who lack the resources to absorb these financial pressures.
“Independent providers are essential to maintaining high-quality, lower cost health care in Indiana,” said Steve Freeland, board officer of IPHA and CEO of Cancer Care Group. “Elevance’s new policy to levy penalties on hospitals resulting from referrals to out-of-network independent physicians will have unintended consequences on many of those physicians who are dependent on their hospital relationships for referrals. Patient care may be impacted in circumstances where the best medical option for the patient is an out-of-network independent physician. We strongly encourage Elevance to rescind this policy and work with providers and legislators to find reasonable solutions that address the concerns of providers and Elevance.”
Sen. Baldwin emphasized the importance of legislative action.
“When insurers penalize providers and facilities for delivering care that patients need, we must act. SB 189 prohibits these deceptive acts and strengthens the No Surprises Act protections. It ensures providers can focus on patient care, patients continue to be protected from surprise bills, and Hoosiers retain access to the services they depend on.”
The organizations urge Hoosiers to contact their legislators to support SB 189 as it moves to the full Senate and House of Representatives.
Video footage of testimony provided on SB 189 on Jan. 14 can be viewed here.
