- Associated Press - Friday, May 8, 2015

INDIANAPOLIS (AP) - A three-year moratorium on construction of most new nursing homes around Indiana will become law a year after the failure of a similar bill sparked a legislative ethics investigation.

Gov. Mike Pence announced Friday he would let the bill become law without his signature despite his concerns about restricting free-market principles.

The law will impose the construction moratorium through June 2018.

Supporters say the moratorium is needed because Indiana has thousands of unused nursing home beds, which are costing the state millions in annual Medicaid costs based on a payment formula that includes construction costs.

A similar proposal failed in 2014 after private lobbying by then-House Speaker Pro Tem Eric Turner, whose family business faced losing millions of dollars. Turner resigned from the Legislature in November.

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