In a move designed to protect patient access to timely and medically necessary care, Indiana is now the first state in the country to ban health insurers from financially penalizing hospitals for using out-of-network providers.

The bipartisan legislation, known as Senate Bill 189, was approved by both chambers of the Indiana General Assembly and is on Gov. Mike Braun's desk, where it is expected to be signed.

The bill comes in the wake of Elevance, an Indianapolis-based health care company, implementing a policy that "encourages the use of in-network providers for services in a facility and penalizes them if out-of-network care is used," according to WTHR.com — essentially limiting patients and facilities to using in-network providers. //

"Advocates [of the bill] say the legislation is a critical step toward protecting patient access to high-quality care and curbing unfair insurer practices within Indiana's health care system where Elevance, including its Anthem Blue Cross Blue Shield plan, controls 68% of Indiana's commercial insurance market," the Indiana Hospital Association said in a statement.