FORT WAYNE, Ind. (WANE) — Parkview Health submitted a plan to lower prices to Indiana lawmakers, who had called on Indiana’s insurers and nonprofit hospitals to work together to lower the “out-of-control costs” of health care.
House Speaker Todd Huston (R-Fishers) and Senate President Pro Tempore Rodric Bray (R-Martinsville) made the request in letters sent December 17, 2021, threatening legislation if no viable plan were presented.
In its response, Parkview said it supported “the efforts of the Indiana Hospital Association and the Insurance Institute of Indiana in outlining a plan for all members that was recently submitted to you.” Both organizations sent letters to outline broad steps their industries could take.
Parkview Health listed specific steps it had taken to control costs:
- In 2020, Parkview negotiated a new contract with it’s largest payor, Anthem, resulting in a $670 million in savings to employers and patients over five years.
- Parkview also renegotiated contracts with other large payors which, combined with Anthem, will yield $1.1 billion in savings over 5-years.
- Parkview decreased overall prices by 12% in 2020, which included significant reductions in highly utilized lab and imaging services.
- Parkview had a 0% price increase in 2021.
The letter repeated Parkview’s previous promise that prices would be lower in 2025 than in 2020. “When adjusted for inflation, employers and patients will be paying 22% less in real dollars in 2025 when compared to 2020.”
Parkview also blasted as inaccurate the data from RAND reports, suggesting the studies are a poor starting point.
“Making important statewide policy decisions based on an inaccurate and incomplete picture of healthcare costs would harm Indiana’s hospitals and, more importantly, our patients and communities,” said the letter.
Full copies of the letters can be found on the Indiana Senate Republicans website.