Indiana unveils Medicaid overhaul aimed at pressuring hospitals to lower prices

By: Casey Smith

Outlets: Indiana Capital Chronicle

Published: May 15, 2026

Words: 1,349

Last Updated: 2 months, 1 week ago

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Indiana officials on Friday rolled out what they described as a first-in-the-nation Medicaid financing overhaul designed to pressure hospitals to lower commercial healthcare prices while directing more state and federal money toward rural and lower-cost providers.

The changes — approved by federal regulators early this month — will revamp how Indiana taxes hospitals and distributes supplemental Medicaid payments.

At the core of the plan is a new payment structure that ties Medicaid reimbursement increases to …

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