(INDIANAPOLIS) - A new Indiana Hospital Association report says 70 hospitals across the state lost 717 million dollars in 2025 because of denied insurance claims, delayed payments and bad debt, even as Hoosiers continue paying higher premiums and out-of-pocket costs.
The 2025 Payor Scorecard found nearly 13 percent of all hospital billings were initially denied, forcing providers into costly appeals and resubmissions before they could collect money already owed for care.
Hospitals statewide also spent more than 400 million dollars last year simply trying to collect payments from insurers, according to the report.
The association says if the findings were expanded to all Indiana hospitals, the total unpaid care burden could exceed 1.6 billion dollars.
One of the biggest pressure points identified in the report involves Medicare Advantage plans, which the association says deny claims at roughly three times the rate of traditional Medicare.
Hospitals report waiting an average of 46 days for reimbursement, with some claims stretching beyond 90 days.
The report also says about one quarter of commercial claim costs are now being shifted directly onto patients through deductibles and coinsurance.
The Indiana Hospital Association says it is now working with lawmakers on possible changes to prior authorization rules and insurer payment timelines, while also launching an "Access Denied" campaign for Hoosiers who have experienced care delays because of insurance disputes.