STATEHOUSE (May 1, 2026) – The governor recently ceremonially signed a new bipartisan law authored by State Rep. Julie McGuire (R-Indianapolis) to provide more transparency and predictability to healthcare bills.
Nearly 1 in 5 Hoosiers has medical debt, totaling over $2 billion and ranking Indiana highest in the Midwest and 11th nationally in number of residents with healthcare bills in collections. McGuire said many hospitals have financial assistance programs but don't consistently disclose them to patients before medical bills go to collections. Additionally, healthcare providers can face unexpected reductions in reimbursement due to insurance claim adjustments or changes in payment policies.
"High healthcare costs and medical debt continue to burden Hoosiers," said McGuire, vice chair of the House Public Health Committee. "This law is another effort to improve transparency, combat unfair practices and put patients first."
House Enrolled Act 1271 requires hospitals to inform patients about financial assistance programs before sending their bill to collections, and to proactively make this information available at intake, discharge and with the initial bill.
The law also addresses downcoding, which is when insurance companies change a claim to a lower-cost service than what the provider submitted, leading to lower reimbursement. Insurers can no longer solely use automated systems or artificial intelligence to downcode a claim without human review. The time allowed for them to recoup overpayments is also shortened from two years to 180 days, and they must provide at least 60 days' notice before implementing any prospective rate reductions.
McGuire said this new law continues her work to address medical costs. During the 2025 legislative session, she authored House Enrolled Act 1604 to incentivize Hoosiers to seek more affordable care options without being penalized and encourage insurers to make their prices competitive to attract more patients.
To learn more about HEA 1271 and other new laws signed by the governor, click here.
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State Rep. Julie McGuire (R-Indianapolis) represents House District 93,
which includes a portion of Marion County.
Click here to download a high-resolution photo.
PHOTO CAPTION: State Rep. Julie McGuire (R-Indianapolis) (fifth from right) joins Gov. Mike Braun (seated) for a ceremonial signing of House Enrolled Act 1271 on Wednesday, April 29, 2026, at the Statehouse. The new law, authored by McGuire, provides more transparency and predictability to healthcare bills. Also pictured is bill co-author State Rep. Lori Goss-Reaves (R-Marion) (fifth from left).
