The Indiana House has recently adopted a piece of legislation that aims to shield Hoosier patients from the harsh surprises of medical debt. According to Indiana House Republicans, the bill, co-authored by State Rep. Martin Carbaugh (R-Fort Wayne), proposes increased transparency in health care billing and establishes guidelines to help prevent unexpected medical debt.
Indiana residents owe more than $2 billion in medical debt, ranking the state 11th nationally for health care bills in collections. Rep. Carbaugh said many patients don’t learn about hospital financial assistance programs until their debt is sent to collectors. “No one plans for medical debt, and they should not be blindsided by it,” Carbaugh said. House Bill 1271 would require hospitals to notify patients about available assistance before bills are turned over to collection agencies, according to Indiana House Republicans.
The bill would also limit insurers from reclassifying procedures under lower-cost codes or reopening settled claims to demand repayment after patients have paid. Carbaugh said the measure would lock in payments once finalized and prevent clawbacks that can strain rural and community hospitals.
Last year, Carbaugh sponsored House Enrolled Act 1004 to rein in health care costs and strengthen nonprofit hospital accountability. He said House Bill 1271 builds on that work by addressing medical debt and billing transparency. Updates on the bill and the legislative session are available at iga.in.gov.
