This month we cover three new features in Sage Transparency 2.0, EFI’s move to join a new national coalition on direct contracting, a warm welcome to EFI’s newest team member, and what’s on the calendar through the end of the year.
Welcome, Kelsey Wermager
EFI is pleased to welcome Kelsey Wermager, RN, as Director of Membership and Programs. She will manage membership, events, communications, and other EFI programs.
Kelsey spent the first decade of her career as a registered nurse in intensive care and cardiac surgery, then moved into community health and place-based work in Michigan’s Upper Peninsula, most recently as Director of the Big Bay Stewardship Council. She now lives in Bloomington with her husband and son.
We’re excited to welcome Kelsey to the EFI team!
Three New Updates to Sage Transparency 2.0
Sage Transparency 2.0 added three features built to make it easier to gain a more complete picture of hospital performance.
- New Sage Overview: a clearer starting point for understanding everything available across Sage.
- New State Overview: key pricing, quality, and financial information at the state level before you dig into individual markets and facilities.
- Hospital Net Profit Margin: now included on the Hospital tab, alongside Sage’s other hospital data.
Sage continues to evolve to meet the needs of its end users, making data available in one free, public tool.
Indiana’s Hospital Price Benchmarks: What the Early Reports Show
Indiana now has three hospital price benchmarks, and each one measures something different:
- Annual pricing report: Large nonprofit systems’ average prices compared with 285% of Medicare.
- Direct-to-employer: Hospitals must offer a direct contract at or below 260% of Medicare.
- Nonprofit tax status: Large nonprofit systems must be at or below the statewide average by 2029 to keep their nonprofit status.
Early reports suggest progress toward some of these benchmarks. The annual pricing report found that three of the five large nonprofit systems had average hospital prices below 285% of Medicare when inpatient and outpatient care were combined. A separate report found that all of the “Big Five” met the 260% threshold for offering direct-to-employer plans.
But both reports have important limitations. The annual pricing report included claims from individual-market insurance plans, which generally pay hospitals 30-50% less than employer-sponsored plans.
The direct-to-employer report confirms that hospitals offered contracts at or below 260% of Medicare, but it doesn’t show whether any employers have signed them.
Neither report can tell you whether what Indiana employers pay for hospital care has changed. Our new explainer breaks down each benchmark and what the results actually measure.
EFI Joins the New Association for Direct Care
EFI has joined the Association for Direct Care, a new national coalition of employers, clinicians, and industry leaders working to expand direct contracting and lower healthcare costs. Led by Executive Director, Taylor Hittle, the group is working to grow direct contracting across commercial and federal programs, improve data access, and remove regulatory barriers.
EFI joined the launch and CEO Randa Deaton offered a reminder of why this matters in the press release announcing the new organization: “Indiana employers are facing some of the highest costs in the nation.”
Indiana’s direct contracting law has become a model other states are watching, and EFI plans to support federal efforts to advance direct contracting through the new coalition.
December 9: EFI All-Stakeholder Meeting (In-Person)
On December 9th, the Employers’ Forum of Indiana will host its final All-Stakeholder Meeting of 2026, bringing together employers, healthcare providers, health plans, brokers and others to discuss what comes next. We’ll explore how Indiana policies are working to create a more competitive healthcare market and the high stakes of the 2027 session.
Topics include:
- Why healthcare doesn’t work like a competitive market and how Indiana is responding
- How ERISA and Indiana Laws work together for Self-Insured Employers
- Policy is Just the Beginning: How Indiana Employers Are Putting Laws into Action
- EFI: A Year in Review and Preview of 2027
After the program, all attendees are invited to join us for a cocktail reception to celebrate and connect with fellow members and stakeholders.
Thank you to the sponsors who made our December 9 year-end meeting possible.
In the News
A few articles about the various market and policy actions underway across the country to address high prices:
- New York Times: Employer Health Costs Are Expected to Spike in 2027
- Health Affairs: In 2026, States Are Leading on Health Care Affordability
- Indianapolis Business Journal: Elevance to Require Hospitals to Include Site-of-Care Information on Claims
Do you have a suggestion or contribution for our next newsletter? Contact us.