Bill > SB0471

This bill requires the Indiana Office of the Secretary of Family and Social Services and the Legislative Services Agency to conduct a comprehensive feasibility study during the 2025 interim on potentially transitioning Medicaid program administration to a nonprofit health insurance entity. The study will explore two primary models: (1) creating a new state or quasi-state nonprofit health insurance entity to manage all Medicaid healthcare and pharmaceutical needs, and (2) expanding the current nonprofit health insurance market to existing entities. Both models have specific requirements, including operating without net profit, maintaining operational reserves under 20% of the annual budget, and limiting executive compensation to $1 million. The study must determine whether either model could generate at least 3% in Medicaid spending savings. If the study identifies potential savings, the general assembly is encouraged to consider implementing legislation during the 2026 regular session, with the office required to submit a full implementation plan by November 1, 2025. Managed care organizations must provide necessary data for the study, and the findings will be reported to the legislative council by October 1, 2025. The bill includes an emergency declaration and will expire on December 31, 2026.

Health and Social Services

https://iga.in.gov/legislative/2025/bills/senate/471/details