LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6335 NOTE PREPARED: Nov 22, 2024
BILL NUMBER: SB 147 BILL AMENDED:
SUBJECT: Physician Referrals and Reimbursement Rates.
FIRST AUTHOR: Sen. Busch BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill prohibits a referring physician from receiving compensation or an
incentive from a health care entity or another physician, who is in the same health care network as the
referring physician, for referring a patient to the health care entity or other physician. It provides that the
rules adopted by the Department of Insurance regarding the All Payer Claims Data Base (APCD) must
include a requirement that health payers report physician reimbursement rates for each contract and specify
a process for health payers to report the physician reimbursement rates. It also requires the (APCD) to
publish the physician reimbursement rates as a separate line item for each contract instead of in the
aggregate.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill’s requirements will increase workload for the Indiana
Department of Insurance (DOI) but should be able to be implemented using existing staffing and resources.
[The DOI is funded through a dedicated agency fund.]
Explanation of State Revenues:
Explanation of Local Expenditures: The bill’s requirements will increase workload for locally-owned
hospitals but should be able to be implemented using existing staffing and resources.
Explanation of Local Revenues:
State Agencies Affected: Indiana Department of Insurance.
Local Agencies Affected: Locally-owned hospitals.
Information Sources:
Fiscal Analyst: Jason Barrett, 317-232-9809.
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