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Thursday, October 29, 2026 · Updated 11:04 AM MT · 46 stories today
Thu, Oct 29 · 46 stories todayPRO
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State Policy · INOctober 29, 2026

Indiana Medicaid Chief Warns of Hospital Fee Phase-Down Fallout

At a quarterly financial meeting, Indiana Family and Social Services Administration Secretary Mitch Roob warned that a federally mandated phase-down of the state's hospital assessment fee will create a "material" budget hit for the Healthy Indiana Plan. Under the One Big Beautiful Bill Act, the fee drops from 6% to 3.5% by late 2031, a change Roob said could have cost the state roughly $900 million, or 40% of collections, had it applied last fiscal year. Roob presented early projections from consultant Deloitte, with a fuller Medicaid forecast due to lawmakers in December, and said the state must find cheaper care delivery models rather than simply cutting rates or eligibility to avoid a "catastrophic situation" by 2032. The fee currently funds the state's share of costs for HIP, which covers expansion adults, pregnant women and low-income caretakers.

Why it mattersIndiana's Medicaid agency faces a looming multi-hundred-million-dollar funding gap that could force provider rate cuts or eligibility restrictions for the Healthy Indiana Plan within five years.

Finance · Managed Care

Read the full article at indianacapitalchronicle.com →
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