LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6860 NOTE PREPARED: Jan 6, 2022
BILL NUMBER: HB 1270 BILL AMENDED:
SUBJECT: Nonprofit Hospital and Insurer Reporting.
FIRST AUTHOR: Rep. Schaibley BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: Hospital Financial Reporting - This bill requires a nonprofit hospital with more
than 100 beds to report annually specified financial information to the State Department of Health.
Public Forums - The bill requires a nonprofit hospital and a health carrier to post and send certain
information at least 45 days before a public forum. It modifies requirements concerning the:
(1) date on which the public forum must be held;
(2) topics that must be discussed at a public forum;
(3) submission of questions and feedback at a public forum; and
(4) use of technology to allow attendance through real time audio and video through the Internet.
Health Coverage Transparency - The bill requires the Insurance Commissioner to report to the Legislative
Council if the federal Transparency in Health Coverage rule (federal rule) is repealed or enforcement is
stopped. It requires health payers to continue to post pricing information in compliance with the federal rule
after the federal rule is repealed or stopped.
All Payer Claims Database - The bill modifies the definition of "health payer" for purposes of the all payer
claims data base.
Effective Date: Upon passage; July 1, 2022.
Explanation of State Expenditures: Agency Workload - Beginning in FY 2023, the bill may require a minor
increase in workload and administrative costs for the Indiana Department of Health (IDOH) to collect and
store the IRS Form 990 information required by the bill from certain nonprofit hospitals in addition to their
HB 1270 1 regular financial reporting. The IDOH could also potentially experience additional workload to investigate
reported violations and enforce corrective action pertaining to the nonprofit hospital public forum
requirements modified by the bill. Additionally, in the event that the federal Transparency in Health
Coverage rule is repealed or enforcement is stopped, the Department of Insurance (DOI) would be required
to notify the Legislative Council, adopt rules, and enforce health plan compliance with the federal rule’s
price transparency requirements as in effect during 2021. These activities are considered routine
administrative functions of the IDOH and DOI and are expected to be completed within existing staffing and
resource levels. [IDOH and DOI administrative expenditures are currently paid from dedicated agency fund
appropriations.]
All Payer Claims Database - The number of records in the all payer claims database (APCD) will increase
by adding claims from health plans that are no longer excluded from APCD reporting as a result of the bill.
The APCD is currently in the design and development stage, allowing additional records to be
accommodated. The costs of storage and processing may be marginally higher than would have been
estimated without these additional records. This project is funded through appropriations to a dedicated fund.
Explanation of State Revenues: If nonprofit hospitals are found to be acting in violation of the public
forum requirements as modified by the bill, the IDOH could potentially impose civil penalties of up to
$10,000 per violation. Revenue collected from civil penalties would be deposited in the General Fund. Any
additional revenue collected as a result of the bill is expected to be minimal.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Health; Department of Insurance.
Local Agencies Affected:
Information Sources: IC 16-21-3-1
Fiscal Analyst: Adam White, 317-234-1360; Karen Rossen, 317-234-2106.
HB 1270 2