LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6320 NOTE PREPARED: Nov 22, 2024
BILL NUMBER: HB 1180 BILL AMENDED:
SUBJECT: Mental Health Care for Veterans with PTSD.
FIRST AUTHOR: Rep. Moseley BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill establishes the returning Hoosier Warrior Mental Health Wellness Pilot
Program (pilot program). It provides that the Indiana Department of Veterans' Affairs shall administer the
pilot program. The bill provides that a qualified service member may receive certain financial assistance from
the Military Family Relief Fund (MFRF) for treatment of posttraumatic stress disorder (PTSD). It provides
that the pilot program is funded by the MFRF. It requires, for the state fiscal year beginning after June 30,
2025, and ending before July 1, 2026, that the Department of Insurance (DOI) deposit $10,000,000 of
Insurance Premiums Tax collected into the fund.
Effective Date: Upon passage; July 1, 2025.
Explanation of State Expenditures: Hoosier Warrior Mental Health Wellness Pilot Program: The bill
establishes the Hoosier Warrior Mental Health Wellness Pilot Program (pilot program) which will increase
grants from the Military Family Relief Fund (MFRF). The bill will require the Indiana Department of
Veterans' Affairs (IDVA) to establish the new program and to process the applications for assistance.
[Expenditures for the pilot program will be paid from a one-time transfer during FY 2026 of $10 M in
Insurance Premiums Tax revenues from the state General Fund to the Military Family Relief Fund, as
prescribed by the bill.]
The bill’s requirements will increase workload for IDVA beyond their current capacity. To meet the
requirements of the bill, the agency would likely need to hire one additional staff. Based on similar positions
within the agency, employing the additional staff is estimated to cost between $92,000 and $97,000 per year,
inclusive of salary and benefits; however, the bill provides that costs for administering the program may be
funded from the MFRF appropriation.
Division of Mental Health and Addiction: It is possible that the Division of Mental Health and Addiction
(DMHA) may need to assist the IDVA with respect to the local community mental health centers that may
give treatment to veterans with PTSD. Given that funds for treatment would be given directly to the qualified
veterans, it is possible the DMHA may need to assist community mental health centers in order to maintain
sufficient staffing. Community mental health centers were appropriated $7.2 M per state fiscal year from
HB 1180 1 dedicated funds for the FY 2023-2025 biennium.
Additional Information: As of 2019, Indiana had 92,454 veterans receiving U.S. Department of Veteran
Affairs compensation for injuries sustained in the line of duty. There may be up to 20% of these veterans
suffering from diagnosed PTSD, which translates to an estimated 18,500 veterans that could qualify for
assistance under the program proposed by the bill.
The MFRF processed 1,636 applications in FY 2024, awarding 793 grants totaling $926,500 with 3 FTE at
the IDVA dedicated to the application and approval process. Current law prohibits IDVA from using any
MFRF money to cover the costs of administering the fund. A majority of the money in the MFRF is received
in the form of fees for military service affiliated license plates. Average annual license plate fee revenue to
the MFRF since 2019 has been approximately $1.9 M. Eligible persons may currently seek financial
assistance for medical expenses from the MFRF, but this has not been the majority type of assistance
awarded in recent years.
Explanation of State Revenues: Military Family Relief Fund: The bill provides for a one-time transfer
during FY 2026 of $10 M in Insurance Premiums Tax revenues from the state General Fund to the MFRF
to provide for treatment of qualifying veterans, effectively reducing state General Fund revenue by $10 M.
Additional Information: The Insurance Premiums Tax is a 1.3% tax on gross premiums received by insurance
companies. The Insurance Premiums Tax generated roughly $266.4 M in revenue during FY 2024. Insurance
Premiums Tax revenue is currently distributed into the state General Fund.
Explanation of Local Expenditures: Community Mental Health Centers: If community mental health
centers experience an increase in intake of qualified veterans seeking treatment as a result of this bill,
additional staffing may be needed.
Explanation of Local Revenues:
State Agencies Affected: Indiana Department of Veterans’ Affairs; Division of Mental Health and
Addiction, Family and Social Services Administration; Department of Insurance.
Local Agencies Affected: Community mental health centers.
Information Sources: State staffing table, November 2024; Legislative Services Agency, Indiana Handbook
of Taxes, Revenues, and Appropriations, FY 2023;
https://www.ptsd.va.gov/understand/common/common_veterans.asp;
https://vaclaimsinsider.com/is-ptsd-a-disability;
https://www.va.gov/VETDATA/index.asp;
https://www.va.gov/vetdata/report.asp;
https://www.in.gov/sba/files/55-HH-2.pdf.
Fiscal Analyst: Jason Barrett, 317-232-9809.
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