HEALTH CARE/
INSURANCE

The IMA supports lowering Indiana’s high health care costs to fund employee and capital investment.

The Indiana Manufacturers Association supports lowering Indiana’s high health care costs to free more dollars for employees and capital investment. Indiana manufacturers spend millions each year for the health care of their employees. The overwhelming majority of manufacturers are self-insured, meaning that dollars are set aside by the employer to pay claims. Thus, added cost in health care spending is money that a manufacturer cannot use for worker pay, capital investment and growth. Increased healthcare expenses in Indiana put employers in the state at a competitive disadvantage to businesses in other, less expensive states.

Defend Self-Insured Health Insurance Plans

The IMA strongly opposes any state legislation or regulation that would interfere with the design, administration, or operation of self-insured health plans. Self-insured health plans provide employers with the flexibility to tailor benefit packages to meet the unique needs of their workforce and control health care costs. Preserving the right of employers to offer self-insured health plans without state interference is essential for maintaining a competitive and efficient health care marketplace. The Employee Retirement Income Security Act of 1974 (ERISA) establishes a clear federal framework for regulating employee benefit plans, including self-insured health plans. State interference undermines ERISA preemption and creates a patchwork of conflicting regulations, increasing administrative burdens and compliance costs for employers. The Indiana General Assembly should reject any measures that would undermine the ability of employers to offer self-insured health plans.

Increase Health Care Cost Transparency

The IMA supports policies that require meaningful transparency in health care pricing and outcomes. For manufacturers to effectively manage their health spending and for employees to be informed consumers, there must be clear, accessible data regarding the cost and quality of services provided by hospitals and health systems. Transparency is a market-based solution that empowers employers to steer their workforce toward high-value care, ultimately driving down the total cost of coverage in Indiana.

Oppose Burdensome Health Care Mandates

The IMA opposes the enactment of additional state-level health insurance mandates that increase the cost of premiums and limit benefit design flexibility. Each new mandate, while often well-intentioned, adds cumulative costs that fall disproportionately on small- and mid-sized manufacturers. These mandates erode the affordability of private coverage and can force employers to reduce other benefits or limit wage increases to offset rising costs. The IMA urges the Indiana General Assembly to evaluate the fiscal impact of any proposed benefit mandate on the private sector and to prioritize the preservation of affordable, market-driven insurance options.