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Lawmakers hear competing views as bill targets insurer penalties tied to out‑of‑network providers
Summary
Senators heard lengthy testimony for and against SB 189, which would bar insurers from imposing a 10% administrative penalty on hospitals when out‑of‑network providers deliver care. Physician groups and hospitals warned of access and competition harms; Elevance/Anthem representatives said the policy aims to curb IDR‑driven inflation. A committee amendment reclassifying the penalty as a deceptive insurance practice passed and the bill was held for further work.
The Senate Insurance and Financial Institutions Committee spent the bulk of a hearing debating Senate Bill 189, a measure prompted by a large payer's notice that it would reduce hospital reimbursements by 10% when hospitals use providers who are out of the insurer's network.
Independent physician advocates and hospital representatives said the policy coerces physicians into insurer networks, threatens independent practices — particularly in rural areas — and could reduce access. "This policy undermines protections, threatens independent practices, and restricts access to care, particularly in rural Indiana," said Dr.…
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