Ind. Code ch. 16-21-16

Ind. Code § 16-21-16-1 Applicability

Sec. 1. This chapter applies to medical debt incurred after June 30, 2026. As added by P.L.124-2026, SEC.5.

Ind. Code § 16-21-16-2 "Medical debt"

Sec. 2. (a) As used in this chapter, "medical debt" means any amount owed that is past due by at least one hundred twenty (120) days for health care services, products, or devices provided to an individual by or in a hospital. (b) The term does not include debt purchased by, payable to, or owed to a financial institution (as defined in IC 28-1-1-3(1)) or the financial institution's assignee. As added by P.L.124-2026, SEC.5.

Ind. Code § 16-21-16-3 Collection of medical debt; noncompliance; determination; notification; suspension; affirmative defense; remedy

Sec. 3. (a) A hospital, or a debt collector or other third party on behalf of a hospital, may not pursue collection of a medical debt unless the hospital is in compliance with the following statutes, if applicable to the hospital: (1) IC 16-21-6. (2) IC 16-21-9. (3) IC 16-21-17.1. (4) IC 16-21-19. (b) The state department shall determine on a semiannual basis whether a hospital is in compliance with the statutes specified in subsection (a) and notify a hospital, in writing, of the state department's determination concerning the hospital's compliance. A determination under this subsection is subject to review under IC 4-21.5. (c) The state department shall notify the office of the attorney general if the state department makes a final determination after, if applicable, any review under IC 4-21.5, that a hospital is noncompliant with the statutes described in subsection (a). (d) The state department shall notify the office of the attorney general of the following under this chapter: (1) A final determination that a hospital is noncompliant. (2) A determination that a hospital that was noncompliant has remedied the noncompliance and is now compliant with the statutes. Upon receiving a notice under subdivision (2), the office of the attorney general shall terminate a suspension described in subsection (e). (e) Unless a review under IC 4-21.5 by the hospital is pending, the office of the attorney general may suspend the noncompliant hospital's authority to pursue medical debt collection after receiving the notification set forth in subsection (d)(1) until the office of the attorney general receives the notice under subsection (d)(2) that the noncompliance has been remedied. (f) An individual may raise a hospital's noncompliance with a statute set forth in subsection (a) as an affirmative defense in any medical debt collection action that occurs during a period of noncompliance once a final determination has been made under subsection (c). (g) A hospital may pursue collection of a medical debt previously incurred by an individual when the hospital was noncompliant under subsection (a) if the state department subsequently makes a determination, in writing, that the noncompliance has been remedied and the hospital is designated by the state department as compliant under this chapter. As added by P.L.124-2026, SEC.5.

Ind. Code § 16-21-16-4 Posting of noncompliant hospitals; procedures

Sec. 4. (a) The state department shall post and update a list of the noncompliant hospitals on the state department's website. (b) The state department shall adopt procedures for the following: (1) The state department's review of a hospital's compliance under this chapter, including a schedule for reviewing and issuing determinations concerning compliance. (2) A noncompliant hospital's subsequent compliance status review to determine if the noncompliance has been remedied. As added by P.L.124-2026, SEC.5.

Ind. Code § 16-21-16-5 Enforcement of suspension; rules

Sec. 5. (a) The attorney general shall enforce any suspension under section 3(e) of this chapter and may do any of the following: (1) Investigate alleged violations. (2) Impose civil penalties of not more than ten thousand dollars ($10,000) per violation. (3) Order restitution to an affected patient or individual. (4) Suspend or prohibit a hospital, a debt collector, or other third party from collecting medical debt until compliance is verified. (b) The attorney general may adopt rules under IC 4-22-2 to implement and administer this chapter. As added by P.L.124-2026, SEC.5.

Ind. Code § 16-21-16-6 Civil action

Sec. 6. An individual injured by a violation of this chapter may bring a civil action to recover in an appropriate court any of the following: (1) Actual damages. (2) Statutory damages not to exceed one thousand dollars ($1,000). (3) Injunctive relief. As added by P.L.124-2026, SEC.5.