The Indiana House Public Health Committee unanimously approved a bill aimed at addressing Medicaid underpayments to hospitals and improving healthcare access for residents.

The bill, authored by Rep. Brad Barrett, would allow hospitals to be assessed to the federal maximum through a Hospital Assessment Fee to increase reimbursement rates. Indiana hospitals currently face $2.7 billion in unpaid healthcare costs annually due to low Medicaid reimbursement rates.

Hospital leaders testified in support of the bill, emphasizing the urgent need for assistance to prevent further closures of healthcare services in the state.

The bill will now move to the House Ways and Means Committee for further review.