A quiet but significant shift is coming for Indiana’s nonprofit hospitals. Beginning September 1, 2025, House Enrolled Act 1004 (HEA 1004) will require hospitals to offer direct-to-employer health care contracts and to ensure that average pricing in those contracts does not exceed 260% of Medicare rates. For those who fail to comply, the law brings a hefty consequence: penalties of up to $10,000 per day.

But compliance doesn’t have to be a burden. In fact, with the right tools, it can be a catalyst for something more powerful: a more strategic, scalable approach to employer partnerships.

HEA 104 for Indiana Hospitals Compliance, Simplified

At its core, HEA 1004 asks hospitals to do two things:

• Set pricing that meets the law’s affordability threshold (HEA 1004 pricing benchmark).
• Make those offerings available, proactively and transprently, to Indiana employers.

Simple in concept. Complex in execution. Building internal infrastructure to manage this could mean months of new development, contracting workflows, and outreach efforts.

That’s where Tendo Care Connect comes in.

Tendo Care Connect is a purpose-built marketplace designed to connect self-insured employers and care navigators with hospitals offering high-value and high quality bundled care. For hospitals, it serves as an easy-to-use, accessible, and scalable delivery channel for HEA 1004-compliant offerings.

Tendo Care Connect helps health systems streamline compliance and enables future growth in three simple steps:

1. Building HEA 1004–Compliant Pricing: Publish bundled, transparent pricing at or below the 260% Medicare benchmark.

Affirmatively offer and transact with employers through a purpose-built platform—choose from market-ready bundles or create your own, then make them discoverable, transactable, and compliant in one step.

2. Offer contracts directly to employers or via the Care Connect Marketplace

3. Market your offering to employers with the support of Tendos proven playbook & toolkit

Meet HEA 1004 Requirements Without Reinventing the Wheel

• Avoid the need to build new systems or standalone networks.
• Retain full control over pricing strategy and service design.

Beyond the Mandate: A Strategic Opportunity

While the law’s near-term focus is compliance, the longer-term opportunity is competitive advantage. Tendo Care Connect is not just a tool to enable compliance, it’s a platform for strategic growth in the employer-sponsored health care market.

By meeting HEA 1004’s requirements on a proven, employer-facing marketplace, hospitals can:

• Position themselves as leaders in price transparency and employer engagement
• Open new direct-to-employer contracting channels with minimal overhead
• Align with the broader shift toward value-driven, bundled care
• Build repeatable, scalable partnerships with Indiana’s large and growing self-insured employer base
• Extend Your Reach with Tendo Marketing Support

Enabling compliance is just the beginning. Tendo Care Connect helps hospitals move from obligation to opportunity with a practical, elegant solution that minimizes administrative lift and maximizes long-term impact.

What’s Next

As the September 2025 deadline approaches, the time to act is now. Hospitals that move early will not only avoid costly penalties but also gain a head start in building durable, high-value relationships with the employers shaping tomorrow’s health care landscape.

Tendo Care Connect is your path to quickly enable compliance and beyond.

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