Indiana Gov. Mitch Daniels Signs Health Care Compact Into Law

Shonda Werry

Indiana Gov. Mitch Daniels Signs Health Care Compact Into Law

March 21, 2012

Gov. Mitch Daniels Monday signed the Health Care Compact into law, paving the way for restoring state control over health care policy and providing Hoosiers an alternative to the federally-run system.

“We passed the Health Care Compact because health care is simply too vast and complicated for a one-size-fits-all federal policy,” said Indiana state representative Tim Neese. “The Health Care Compact acknowledges that state authority over this issue means voters will have a voice in how their health care is managed so that customized solutions can be developed to solve Indiana's unique health care problems."

Under the Health Care Compact, each state receives annual federal funding for health care that is mandatory spending and not subject to the annual appropriations process. Indiana's allotment would be calculated from a baseline of 2010 health care spending, adjusted for changes in population and inflation.

“Our health care system should be tailored to fit the needs of the people of Indiana,” said Neese. “Citizens should be able to influence policy decisions affecting them, especially when it comes to their health.”

The Health Care Compact is an initiative of the Health Care Compact Alliance, a nonpartisan organization dedicated to providing Americans more authority over decisions that govern their health care. It does not make suggestions on what policies individual states should pursue but advocates that health care policy decisions be made at the state level.

The Compact has been introduced in 13 states since February of 2011 and has been adopted in Texas, Georgia, Oklahoma, Missouri, and now Indiana.

For the Health Care Compact to become law, it must be approved by Congress. Once it is ratified, states will then be responsible for crafting their own policies.