Bauer on HB 1001: ‘Republican budget quietly undermines health care access across Indiana’
Today, April 25, the Indiana General Assembly approved the final version of House Bill 1001, advancing the state’s next two-year budget to the governor’s desk. State Rep. Maureen Bauer (D-South Bend) voted against the bill, citing serious concerns about significant cuts to public health funding and the introduction of new barriers to care that will harm Hoosiers statewide, especially new mothers, seniors, low-income families and those living in rural or underserved areas.
“This budget sends a clear and troubling statement about our priorities,” Bauer said. “Budgets are moral documents, and this one reflects the state's choice for austerity over accessibility, bureaucracy over community care.”
Bauer highlighted several alarming provisions within the budget:
Cuts to Local Public Health Funding: Public health grants will be slashed from $150 million to just $40 million annually over the next two years. This funding was adopted by all 92 counties in the state for preventative care to improve maternal and infant health, address chronic disease prevention, and other necessary clinical needs. Additionally, new restrictions limit the use of more than 10% of these funds for capital expenditures. This hardly makes "Indiana Healthy.'"
Cuts to 'Housing First' Program: Although there have been several failed attempts to include language that criminalizes homelessness in Indiana within various pieces of legislation, this budget completely eliminates the Housing First Program. A program that provided rental assistance and supportive services to individuals and families with serious, persistent mental illness, chronic chemical addiction, or a serious and persistent mental illness with a co-occurring chemical addiction who are also facing a housing crisis or exiting a residential treatment program.
Statewide Payment Restrictions: The budget expands site-of-service payment limits across Indiana. This change will reduce reimbursement rates for hospitals providing outpatient services outside traditional facilities, putting increased financial pressure on rural hospitals and community clinics already operating on a tight budget.
Mental Health Funding Penalties: A new provision disqualifies community mental health centers from receiving state or local funding if they offer competitive compensation to attract skilled clinical staff. These risks driving qualified professionals out of Indiana and further jeopardize access to already fragile mental health care services.
Medicaid Changes: The budget introduces administrative shifts that transfer financial risk onto healthcare providers within the Medicaid program, without enhancing patient support or provider reimbursement. These changes could ultimately result in fewer dollars reaching the people and providers who need them most.
“These policy changes don’t just hurt institutions – they hurt people,” Bauer said. “This budget quietly undermines healthcare access across Indiana. At a time when Indiana ranks among the worst states for maternal mortality and access to mental health care, we should be investing more, not less, in the systems that keep our families healthy.”
Bauer reaffirmed her commitment to fight for policies that support health equity, strengthen health care access and protect frontline health providers.