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SB 147

Physician referrals and reimbursement rates.

2025 Regular Session Introduced by Brad Barrett and 5 co-sponsors

SB 147 modifies Indiana physician referral rules and reimbursement rates; passed Senate 45-2, now in House Insurance Committee review.

First reading: referred to Committee on Insurance
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Bill Summary · SB 147

Legislative bill overview

SB 147 appears to address the mechanics of physician referrals and how healthcare providers are reimbursed for referred services. Based on the bill's title and legislative pathway, it likely modifies Indiana's regulations governing either self-referral prohibitions, reimbursement methodologies for referred care, or transparency requirements in the referral process. The bill passed the Indiana Senate with strong bipartisan support (45-2) and is currently under review in the House Insurance Committee.

Why is this important

Physician referral and reimbursement policies directly affect healthcare costs, patient access, and potential conflicts of interest in medical decision-making. Changes to these regulations can influence whether physicians refer patients based on clinical need versus financial incentives, impact insurance rates, and determine how efficiently healthcare dollars flow through the system. For patients, this affects both treatment recommendations and out-of-pocket costs.

Potential points of contention

  • Self-referral concerns: If the bill relaxes restrictions on physicians referring to entities they have financial interests in, it could incentivize unnecessary referrals and increase healthcare spending, though proponents argue it improves efficiency and patient choice.
  • Reimbursement rate impacts: Changes to reimbursement methodology could disadvantage certain provider types (rural physicians, specialists, small practices) while benefiting others, potentially affecting care availability in underserved areas.
  • Insurance market effects: Modifications to referral requirements may shift administrative costs between insurers and providers, ultimately affecting premium rates and insurer competitiveness.

Compiled from official sources — confirm details with the bill’s official record.

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