Bill > SB0485

This bill establishes a new managed care assessment fee mechanism for Indiana, designed to help fund the state's Medicaid services. The bill creates a new chapter in Indiana law that allows the state to assess a fee on managed care organizations equal to 28.5% of certain hospital-related fees, but only with approval from the federal Centers for Medicare and Medicaid Services (CMS). The fee can only be used to pay the state's share of Medicaid service costs and will be assessed annually for state fiscal years when directed payments are made to hospitals. The bill establishes a managed care assessment fund to collect these fees and creates a five-member committee to provide recommendations about the fee's implementation. The legislation includes detailed provisions for how the fee will be calculated, collected, and reconciled, with specific rules about payment schedules, penalties for late payments, and potential consequences for managed care organizations that fail to comply, such as contractual sanctions or potential suspension of their operating authority. The bill also extends the expiration of the existing hospital assessment fee law to June 30, 2027, and declares an emergency, meaning it would take effect immediately upon passage.

Health and Social Services

https://iga.in.gov/legislative/2025/bills/senate/485/details