INDIANA – At the direction of Governor Braun, the Indiana Department of Health (IDOH), Consumer Services, and Healthcare Regulation Commission (CSHCR) has released its inaugural Direct-to-Employer Healthcare Arrangement Plan Review for calendar year 2025. This first-of-its-kind report offers Indiana employers new visibility into hospital pricing and highlights expanding opportunities for improving workforce healthcare affordability through direct-to-employer (DTE) contracting.
Under Indiana law, nonprofit hospitals must demonstrate that their employer‑direct plans remain at or below 260% of Medicare rates. In this first annual review, all submitted plans met the benchmark, reflecting a strong statewide commitment to competitive, transparent, and employer‑aligned pricing.
Governor Braun emphasized the broader economic significance, “When employers can access stable, affordable healthcare, they can invest more confidently in their workers and communities. Direct-to-employer contracting is a smart, forward-looking option that strengthens Indiana’s competitive edge, and I applaud the hospitals and employers embracing this model.”
Participating health systems included Ascension St. Vincent, Community Health Network, Franciscan Health, Indiana University Health, and Parkview Health Network. Many demonstrated pricing strategies well below the statutory threshold, offering employers greater ability to manage year-over-year healthcare spending.
Health and Human Services Secretary Gloria Sachdev highlighted the importance of the findings:
“This year’s review demonstrates that Indiana hospitals are stepping up to provide employers with affordable, predictable healthcare options. Direct-to-employer contracts are an important tool for controlling costs while maintaining access to high-quality care. We encourage businesses statewide to take full advantage of these solutions.”
Don King, CEO of Ascension St. Vincent, expressed the system’s long-standing commitment to employer partnerships: “Our mission is to deliver care that is both high quality and affordable. Through direct employer arrangements, we partner with organizations across Indiana, from small employers to large corporations, schools, public safety agencies, and local governments, to improve affordability and deliver high-value care. Our Employer Solutions program, established in 2009, serves more than 75 businesses, 125 public schools, and over 300 public safety agencies, and we are proud to support employers across the state.”
Amy Boyle, Vice President of Human Resources at Purdue University, emphasized the value for higher education employers, “As one of the state’s largest academic employers, Purdue University is always working to provide our faculty and staff with benefits that are both high quality and financially sustainable. Greater transparency into hospital pricing helps institutions like ours design plans that support recruitment, retention, and employee well-being. We appreciate IDOH’s focus on data-driven insight and have found direct-to-employer arrangements to be a valuable strategy we have routinely utilized in stabilizing long-term healthcare costs.”
The Indiana Chamber of Commerce, representing thousands of employers statewide, welcomed the report’s findings, “Rising healthcare costs remain one of the biggest challenges for Indiana businesses. The data in this report is encouraging because it shows clear pathways to affordability and transparency. We strongly support the continued expansion of direct-to-employer options and encourage our members to explore how these plans can reduce costs for their organizations.”
As Indiana companies continue competing for talent and managing operational expenses, direct-to-employer healthcare arrangements provide a compelling alternative to traditional insurance models — offering predictability, clarity, and greater alignment between providers and employers.
The full CY25 Direct-to-Employer Review is available through the Indiana Department of Health’s website.
Employers may contact the IDOH Consumer Services and Healthcare Regulation Commission for more information.
Visit the Indiana Department of Health at www.health.in.gov for important health and safety information or follow us on Facebook at www.facebook.com/StateHealthIN.
