Week in Insights: Indiana Bill Sets Path to Curbing Health Costs

Indiana lawmakers introduced a bill last month that could set a precedent for other states looking to rein in health-care costs. The proposed law would strip nonprofit hospitals of their tax-free benefits if they are found to have charged commercially insured patients more than 200% of what Medicare pays for the same underlying services.

This policy reform follows a simple principle: If a nonprofit hospital acts like a for-profit business, it should be taxed like one.

The bill responds to a growing crisis in Indiana’s health-care system, where hospital costs have soared. A recent investigation found that one ...