STATEHOUSE (Feb. 11, 2026) – The Indiana House recently passed State Rep. Julie McGuire's (R-Indianapolis) legislation to provide more fairness and predictability to health care payments and establish clearer rules to protect patients from medical debt surprises.
Medical debt in Indiana tops $2 billion, ranking the state 11th nationally in number of residents with health care bills in collections. McGuire said many hospitals have financial assistance programs, but they are not consistently disclosed to patients and are rarely explained before medical bills go to collections. Additionally, insurance companies sometimes re-label medical procedures under cheaper codes or reopen settled claims to demand money back long after patients thought their bill was finalized.
"Too many Hoosiers are getting crushed by medical debt, and finding payment assistance is often an interminable process," McGuire said. "Patients deserve more transparency when it comes to their financial options as well as predictable rules for billing."
House Bill 1271 would require hospitals to inform patients about assistance programs before sending their bill to collections, and to proactively make information on financial assistance programs available.
Additionally, McGuire's legislation would lock payments once medical bills are paid to prevent insurers from retroactively demanding reimbursement after paying claims. To help protect the revenue of rural and community hospitals, insurance companies would be prohibited from recouping payments on the original facility when patient transfers occur.
McGuire is continuing her work on helping Hoosiers with 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 House Bill 1271 and follow session, visit iga.in.gov.
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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.
