Indiana 2024 Regular Session

Indiana Senate Bill SB0276 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 276
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 16-18-2-52.5; IC 16-21; IC 24-4.5-5-104;
7	7	IC 24-5-24.8; IC 28-9; IC 32-28-15; IC 32-33-22; IC 34-25-1-1.5;
8	8	IC 34-55-9.
9	9	Synopsis: Health care debt and costs. Adds a new chapter to the
10	10	Indiana Code governing hospitals' billing practices and financial
11	11	disclosures to patients. Provides that the unpaid earnings of a consumer
12	12	who resides in Indiana may not, at any time, be attached by
13	13	garnishment in satisfaction of: (1) any amount of health care debt owed
14	14	or alleged to be owed by the consumer; or (2) in an action against the
15	15	consumer in which a judgment has been entered, any amount of the
16	16	judgment that represents health care debt determined to be owed by the
17	17	consumer. Prohibits a health care provider from reporting or furnishing
18	18	to a consumer reporting agency any information related to health care
19	19	debt owed or alleged to be owed by a consumer who resides in Indiana.
20	20	Defines a "third party furnisher" as a person that regularly and in the
21	21	ordinary course of business furnishes to consumer reporting agencies
22	22	information about the transactions and experiences of health care
23	23	providers with consumers, including information regarding delinquent
24	24	account actions. Requires a health care provider to include in any
25	25	contract entered into with a third party furnisher a provision that
26	26	prohibits the reporting or furnishing to a consumer reporting agency
27	27	any information related to health care debt owed or alleged to be owed
28	28	by a consumer, including information concerning any delinquent
29	29	account action taken with respect to health care debt. Provides that if
30	30	information related to health care debt is reported to a consumer
31	31	reporting agency in violation of these provisions: (1) the consumer who
32	32	owes or is alleged to owe the health care debt is relieved from any
33	33	liability to pay the amount of health care debt reported; and (2) the
34	34	health care provider and any third party furnisher engaged by the health
35	35	(Continued next page)
36	36	Effective: Upon passage; July 1, 2024.
37	37	Qaddoura
38	38	January 11, 2024, read first time and referred to Committee on Health and Provider
39	39	Services.
40	40	2024 IN 276—LS 6754/DI 101 Digest Continued
41	41	care provider before or after the reporting of the information may not
42	42	collect or pursue the collection of the amount reported. Prohibits a
43	43	consumer reporting agency from recording or retaining in the file of a
44	44	consumer any information that is: (1) related to health care debt
45	45	incurred or alleged to be incurred by the consumer; and (2) reported to
46	46	the consumer reporting agency after June 30, 2024. Provides that if a
47	47	consumer reporting agency receives a request from a consumer to
48	48	delete any record of health care debt maintained in the file of the
49	49	consumer, the consumer reporting agency shall, not later than five
50	50	business days after receiving the request, take all lawful and reasonable
51	51	actions to delete from the consumer's file the record of the health care
52	52	debt, regardless of when the health care debt was reported to the
53	53	consumer reporting agency. Prohibits a health care provider from: (1)
54	54	charging or collecting interest on the unpaid balances of health care
55	55	debt at a rate that exceeds an annual rate of 9%; or (2) initiating any
56	56	delinquent account action with respect to health care debt during the
57	57	pendency of an appeal by the consumer for the denial of insurance or
58	58	other third party coverage for the health care services, products, or
59	59	devices with respect to which the health care debt was incurred.
60	60	Prohibits a creditor from obtaining or using a consumer's medical
61	61	information in connection with any determination of the consumer's
62	62	eligibility, or continued eligibility, for credit, as required under the
63	63	federal Fair Credit Reporting Act. Provides that a person that violates
64	64	these provisions commits a deceptive act that is actionable only by the
65	65	attorney general under the Indiana statute concerning deceptive
66	66	consumer sales. Amends the statute concerning adverse claims against
67	67	deposit accounts to prohibit a depository financial institution that
68	68	receives notice of an adverse claim based on health care debt owed or
69	69	alleged to be owed by a consumer from: (1) recognizing the adverse
70	70	claim in any manner; or (2) placing a hold on, or otherwise restricting
71	71	withdrawal of funds from, a deposit account in which the consumer
72	72	who is the subject of the adverse claim has an interest. Provides that:
73	73	(1) any amount of health care debt owed or alleged to be owed by a
74	74	consumer; or (2) in an action against a consumer in which a judgment
75	75	has been entered, any amount of the judgment that represents health
76	76	care debt determined to be owed by the consumer; does not constitute
77	77	a lien against the consumer's principal residence or against certain
78	78	personal property of the consumer. Provides that in any action filed, in
79	79	a court of competent jurisdiction in Indiana, for the recovery of health
80	80	care debt owed or alleged to be owed by a consumer, the court does not
81	81	have and shall not entertain jurisdiction in any: (1) action of attachment
82	82	against the real or personal property of the consumer; or (2) action of
83	83	garnishment; upon, or any time after, the filing of the complaint in the
84	84	action. Provides that in any action filed, in a court of competent
85	85	jurisdiction in Indiana, for the recovery of health care debt owed or
86	86	alleged to be owed by a consumer, the principal residence of the
87	87	consumer is not liable to judgment or attachment or to be sold on
88	88	execution against the consumer.
89	89	2024 IN 276—LS 6754/DI 1012024 IN 276—LS 6754/DI 101 Introduced
90	90	Second Regular Session of the 123rd General Assembly (2024)
91	91	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
92	92	Constitution) is being amended, the text of the existing provision will appear in this style type,
93	93	additions will appear in this style type, and deletions will appear in this style type.
94	94	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
95	95	provision adopted), the text of the new provision will appear in this style type. Also, the
96	96	word NEW will appear in that style type in the introductory clause of each SECTION that adds
97	97	a new provision to the Indiana Code or the Indiana Constitution.
98	98	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
99	99	between statutes enacted by the 2023 Regular Session of the General Assembly.
100	100	SENATE BILL No. 276
101	101	A BILL FOR AN ACT to amend the Indiana Code concerning trade
102	102	regulation.
103	103	Be it enacted by the General Assembly of the State of Indiana:
104	104	1 SECTION 1. IC 16-18-2-52.5 IS AMENDED TO READ AS
105	105	2 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 52.5. (a) "Charity care",
106	106	3 for purposes of IC 16-21-6, IC 16-21-6.1, and IC 16-21-9, means the
107	107	4 unreimbursed cost to a hospital of providing, funding, or otherwise
108	108	5 financially supporting health care services:
109	109	6 (1) to a person classified by the hospital as financially indigent or
110	110	7 medically indigent on an inpatient or outpatient basis; and
111	111	8 (2) to financially indigent patients through other nonprofit or
112	112	9 public outpatient clinics, hospitals, or health care organizations.
113	113	10 (b) As used in this section, "financially indigent" means an
114	114	11 uninsured or underinsured person who is accepted for care with no
115	115	12 obligation or a discounted obligation to pay for the services rendered
116	116	13 based on the hospital's financial criteria and procedure used to
117	117	14 determine if a patient is eligible for charity care. The criteria and
118	118	15 procedure must include income levels and means testing indexed to the
119	119	2024 IN 276—LS 6754/DI 101 2
120	120	1 federal poverty guidelines. A hospital may determine that a person is
121	121	2 financially or medically indigent under the hospital's eligibility system
122	122	3 after health care services are provided.
123	123	4 (c) As used in this section, "medically indigent" means a person
124	124	5 whose medical or hospital bills after payment by third party payors
125	125	6 exceed a specified percentage of the patient's annual gross income as
126	126	7 determined in accordance with the hospital's eligibility system, and
127	127	8 who is financially unable to pay the remaining bill.
128	128	9 SECTION 2. IC 16-21-6.1 IS ADDED TO THE INDIANA CODE
129	129	10 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
130	130	11 JULY 1, 2024]:
131	131	12 Chapter 6.1. Hospitals' Billing Practices and Financial
132	132	13 Disclosures to Patients
133	133	14 Sec. 1. A hospital shall develop a written notice about any
134	134	15 charity care program operated by the hospital and about the
135	135	16 procedures by which a person may apply for any such charity care
136	136	17 program. The notice must be in English and, to the extent
137	137	18 practicable, in any other prevalent language used in the
138	138	19 communities served by the hospital. The notice must be:
139	139	20 (1) provided to a person at the time the person receives health
140	140	21 care services, to the extent practicable; and
141	141	22 (2) conspicuously posted in the following areas:
142	142	23 (A) The general waiting area.
143	143	24 (B) The waiting area for emergency services.
144	144	25 (C) The business office.
145	145	26 (D) Any other area that the hospital considers an
146	146	27 appropriate area in which to provide notice of a charity
147	147	28 care program.
148	148	29 Sec. 2. (a) Before billing a person for any health care services
149	149	30 provided to the person, a hospital shall determine whether the
150	150	31 person is eligible for any charity care program operated by the
151	151	32 hospital. A hospital shall make the determination required by this
152	152	33 section in accordance with the hospital's financial criteria and
153	153	34 procedures used to determine a person's eligibility for the
154	154	35 hospital's charity care program, including the use of income levels
155	155	36 and means testing indexed to the federal poverty guidelines, as
156	156	37 described in IC 16-18-2-52.5(b).
157	157	38 (b) If a hospital determines under subsection (a) that a person
158	158	39 to whom health care services have been provided is eligible for a
159	159	40 charity care program operated by the hospital, the hospital shall:
160	160	41 (1) enroll the person in the hospital's charity care program:
161	161	42 (A) to the extent the hospital is able to do so under any:
162	162	2024 IN 276—LS 6754/DI 101 3
163	163	1 (i) funding limits;
164	164	2 (ii) enrollment limits; or
165	165	3 (iii) other limits, caps, or restrictions;
166	166	4 applicable to the program; and
167	167	5 (B) subject to the person's right to opt out of enrollment in
168	168	6 the program using the procedures described in subdivision
169	169	7 (2)(C); and
170	170	8 (2) notify the person of:
171	171	9 (A) the person's eligibility for the charity care program;
172	172	10 (B) the fact that the person has been enrolled in the charity
173	173	11 care program; and
174	174	12 (C) the person's right to opt out of enrollment in the
175	175	13 charity care program by using procedures specified in the
176	176	14 notice.
177	177	15 (c) A hospital may provide notice to a person under subsection
178	178	16 (b):
179	179	17 (1) in a writing delivered to the person;
180	180	18 (2) by electronic mail; or
181	181	19 (3) through a mobile application or another Internet based
182	182	20 method, if available;
183	183	21 according to the preference expressed by the person to whom
184	184	22 health care services have been provided.
185	185	23 Sec. 3. (a) A hospital may not bill a person for any health care
186	186	24 services provided to the person unless the hospital first
187	187	25 communicates to the person a good faith estimate of the person's
188	188	26 out-of-pocket expenses after any expected payments or discounts
189	189	27 from:
190	190	28 (1) any charity care program:
191	191	29 (A) operated by the hospital; and
192	192	30 (B) with respect to which the person has been:
193	193	31 (i) determined to be eligible for; and
194	194	32 (ii) enrolled in;
195	195	33 under section 2 of this chapter; or
196	196	34 (2) a third party payor, including:
197	197	35 (A) Medicare;
198	198	36 (B) Medicaid or any other federal, state, or local indigent
199	199	37 health care program, eligibility for which is based on
200	200	38 financial need; or
201	201	39 (C) commercial insurance;
202	202	40 have been applied to the total charges for the health care services
203	203	41 provided.
204	204	42 (b) A hospital may provide the good faith estimate required by
205	205	2024 IN 276—LS 6754/DI 101 4
206	206	1 this section:
207	207	2 (1) in a writing delivered to the person;
208	208	3 (2) by electronic mail; or
209	209	4 (3) through a mobile application or another Internet based
210	210	5 method, if available;
211	211	6 according to the preference expressed by the person to whom
212	212	7 health care services have been provided.
213	213	8 (c) The good faith estimate required by this section after health
214	214	9 care services have been provided is separate from, and in addition
215	215	10 to, any good faith estimate requested by an individual under
216	216	11 IC 27-1-46 before nonemergency health care services are provided
217	217	12 to the individual.
218	218	13 SECTION 3. IC 16-21-9-7, AS AMENDED BY P.L.6-2012,
219	219	14 SECTION 115, IS AMENDED TO READ AS FOLLOWS
220	220	15 [EFFECTIVE JULY 1, 2024]: Sec. 7. (a) Each nonprofit hospital shall
221	221	16 prepare an annual report of the community benefits plan. The report
222	222	17 must include, in addition to the community benefits plan itself, the
223	223	18 following background information:
224	224	19 (1) The hospital's mission statement.
225	225	20 (2) A disclosure of the health care needs of the community that
226	226	21 were considered in developing the hospital's community benefits
227	227	22 plan.
228	228	23 (3) A disclosure of the amount and types of community benefits
229	229	24 actually provided, including charity care. Charity care must be
230	230	25 reported as a separate item from other community benefits.
231	231	26 (b) Each nonprofit hospital shall annually file a report of the
232	232	27 community benefits plan with the state department. For a hospital's
233	233	28 fiscal year that ends before July 1, 2011, the report must be filed not
234	234	29 later than one hundred twenty (120) days after the close of the
235	235	30 hospital's fiscal year. For a hospital's fiscal year that ends after June 30,
236	236	31 2011, the report must be filed at the same time the nonprofit hospital
237	237	32 files its annual return described under Section 6033 of the Internal
238	238	33 Revenue Code that is timely filed under Section 6072(e) of the Internal
239	239	34 Revenue Code, including any applicable extension authorized under
240	240	35 Section 6081 of the Internal Revenue Code.
241	241	36 (c) Each nonprofit hospital shall prepare a statement that notifies the
242	242	37 public that the annual report of the community benefits plan is:
243	243	38 (1) public information;
244	244	39 (2) filed with the state department; and
245	245	40 (3) available to the public on request from the state department.
246	246	41 This statement shall be posted in prominent places throughout the
247	247	42 hospital, including the emergency room waiting area and the
248	248	2024 IN 276—LS 6754/DI 101 5
249	249	1 admissions office waiting area. The statement shall also be printed in
250	250	2 the hospital patient guide or other material that provides the patient
251	251	3 with information about the admissions criteria of the hospital.
252	252	4 (d) Each nonprofit hospital shall develop, provide, and post a
253	253	5 written notice about any charity care program operated by the hospital
254	254	6 and how to apply for charity care. The notice must be in appropriate
255	255	7 languages if possible. The notice must also be conspicuously posted in
256	256	8 the following areas:
257	257	9 (1) The general waiting area.
258	258	10 (2) The waiting area for emergency services.
259	259	11 (3) The business office.
260	260	12 (4) Any other area that the hospital considers an appropriate area
261	261	13 in which to provide notice of a charity care program. in
262	262	14 accordance with IC 16-21-6.1-1.
263	263	15 SECTION 4. IC 24-4.5-5-104 IS AMENDED TO READ AS
264	264	16 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 104. No
265	265	17 Garnishment Before Judgment — (1) As used in this section,
266	266	18 "consumer" means an individual whose principal residence is in
267	267	19 Indiana. The term includes the following:
268	268	20 (a) A protected consumer (as defined in IC 24-5-24.5-4).
269	269	21 (b) A representative acting on behalf of a protected consumer
270	270	22 (as defined in IC 24-5-24.5-4).
271	271	23 (2) As used in this section, "health care debt" means an
272	272	24 obligation or an alleged obligation of a consumer to pay an amount
273	273	25 related to the receipt of health care services, products, or devices
274	274	26 provided to a person by a health care provider. The term does not
275	275	27 include debt charged to a credit card unless the credit card is
276	276	28 issued under:
277	277	29 (a) an open-end plan; or
278	278	30 (b) a closed-end plan;
279	279	31 offered specifically for the payment of health care services,
280	280	32 products, or devices provided to a person.
281	281	33 (3) As used in this section, "health care provider" means:
282	282	34 (a) a hospital or facility listed in IC 16-39-7-1(a)(13); or
283	283	35 (b) a provider of ambulance services (as defined in
284	284	36 IC 16-18-2-13.4).
285	285	37 The term includes an affiliate, officer, agent, or employee of a
286	286	38 person described in subdivision (a) or (b).
287	287	39 (4) Notwithstanding any other law, the unpaid earnings of a
288	288	40 consumer may not, at any time, be attached by garnishment or like
289	289	41 proceedings in satisfaction of:
290	290	42 (a) any amount of health care debt owed or alleged to be owed
291	291	2024 IN 276—LS 6754/DI 101 6
292	292	1 by the consumer; or
293	293	2 (b) in an action against the consumer in which a judgment has
294	294	3 been entered, any amount of the judgment that represents
295	295	4 health care debt determined to be owed by the consumer.
296	296	5 (5) Prior to entry of judgment in an action against the debtor, no a
297	297	6 creditor may not attach unpaid earnings of the debtor by garnishment
298	298	7 or like proceedings.
299	299	8 SECTION 5. IC 24-5-24.8 IS ADDED TO THE INDIANA CODE
300	300	9 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
301	301	10 JULY 1, 2024]:
302	302	11 Chapter 24.8. Prohibitions Concerning Health Care Debt
303	303	12 Sec. 1. As used in this chapter, "affiliate" means any person who
304	304	13 directly or indirectly:
305	305	14 (1) controls;
306	306	15 (2) is controlled by; or
307	307	16 (3) is under the common control of;
308	308	17 another person.
309	309	18 Sec. 2. (a) As used in this chapter, "consumer" means an
310	310	19 individual whose principal residence is in Indiana.
311	311	20 (b) The term includes the following:
312	312	21 (1) A protected consumer (as defined in IC 24-5-24.5-4).
313	313	22 (2) A representative acting on behalf of a protected consumer
314	314	23 (as defined in IC 24-5-24.5-4).
315	315	24 Sec. 3. As used in this chapter, "consumer report" means any
316	316	25 written, oral, or other communication of any information that:
317	317	26 (1) is made by a consumer reporting agency;
318	318	27 (2) bears on a consumer's creditworthiness, credit standing,
319	319	28 credit capacity, character, general reputation, personal
320	320	29 characteristics, or mode of living; and
321	321	30 (3) is used or expected to be used or collected in whole or in
322	322	31 part for the purpose of serving as a factor in establishing a
323	323	32 consumer's eligibility for:
324	324	33 (A) credit or insurance to be used primarily for personal,
325	325	34 family, or household purposes;
326	326	35 (B) employment purposes; or
327	327	36 (C) any other purpose authorized under Section 604 of the
328	328	37 federal Fair Credit Reporting Act (15 U.S.C. 1681b).
329	329	38 Sec. 4. (a) As used in this chapter, "consumer reporting agency"
330	330	39 means any person that, for monetary fees or dues, or on a
331	331	40 cooperative nonprofit basis, regularly engages in whole or in part
332	332	41 in the practice of assembling or evaluating consumer credit
333	333	42 information or other information on consumers for the purpose of
334	334	2024 IN 276—LS 6754/DI 101 7
335	335	1 furnishing a consumer report to third parties.
336	336	2 (b) The term does not include an entity designated as a
337	337	3 commercially reasonable private consumer credit reporting entity
338	338	4 under IC 24-4.5-7-404(5).
339	339	5 Sec. 5. (a) As used in this chapter, "creditor" means any person
340	340	6 that regularly:
341	341	7 (1) extends, renews, or continues credit; or
342	342	8 (2) arranges for the extension, renewal, or continuation of
343	343	9 credit.
344	344	10 (b) The term includes any person that:
345	345	11 (1) is an assignee of a person described in subsection (a); and
346	346	12 (2) participates in the decision to extend, renew, or continue
347	347	13 credit.
348	348	14 Sec. 6. As used in this chapter, "delinquent account action",
349	349	15 with respect to a consumer's delinquent account with a health care
350	350	16 provider, means any action taken to initiate, or in furtherance of:
351	351	17 (1) placing the customer's account for collection;
352	352	18 (2) charging the customer's account to profit or loss; or
353	353	19 (3) subjecting the customer's account to any similar action;
354	354	20 whether taken through the health care provider's own actions or
355	355	21 those of a third party furnisher.
356	356	22 Sec. 7. As used in this chapter, "file", when used in connection
357	357	23 with information on a consumer, means all the information on that
358	358	24 consumer that is recorded and retained by a consumer reporting
359	359	25 agency, regardless of how the information is stored.
360	360	26 Sec. 8. (a) As used in this chapter, "health care debt" means an
361	361	27 obligation or an alleged obligation of a consumer to pay an amount
362	362	28 related to the receipt of health care services, products, or devices
363	363	29 provided to a person by a health care provider.
364	364	30 (b) The term does not include debt charged to a credit card
365	365	31 unless the credit card is issued under:
366	366	32 (1) an open-end plan; or
367	367	33 (2) a closed-end plan;
368	368	34 offered specifically for the payment of health care services,
369	369	35 products, or devices provided to a person.
370	370	36 Sec. 9. As used in this chapter, "health care provider" means:
371	371	37 (1) a hospital or facility listed in IC 16-39-7-1(a)(13); or
372	372	38 (2) a provider of ambulance services (as defined in
373	373	39 IC 16-18-2-13.4).
374	374	40 The term includes an affiliate, officer, agent, or employee of a
375	375	41 person described in subdivision (1) or (2).
376	376	42 Sec. 10. (a) As used in this chapter, "third party furnisher"
377	377	2024 IN 276—LS 6754/DI 101 8
378	378	1 means a person that regularly and in the ordinary course of
379	379	2 business furnishes to one (1) or more consumer reporting agencies
380	380	3 information about the transactions and experiences of one (1) or
381	381	4 more health care providers with one (1) or more consumers,
382	382	5 including information regarding delinquent account actions,
383	383	6 regardless of whether the delinquent account actions were taken
384	384	7 by:
385	385	8 (1) the person;
386	386	9 (2) the health care provider on whose behalf the person
387	387	10 furnishes the information; or
388	388	11 (3) any other person.
389	389	12 (b) The term includes a collection agency (as defined in
390	390	13 IC 25-11-1-1) that regularly and in the ordinary course of business
391	391	14 engages in the activities described in subsection (a).
392	392	15 (c) The term includes an affiliate, officer, agent, or employee of
393	393	16 a person described in subsection (a) or (b).
394	394	17 Sec. 11. (a) After June 30, 2024, a health care provider:
395	395	18 (1) shall not report or furnish to a consumer reporting agency
396	396	19 any information related to health care debt owed or alleged to
397	397	20 be owed by a consumer; and
398	398	21 (2) shall include in any contract or agreement entered into
399	399	22 with a third party furnisher a provision that prohibits the
400	400	23 reporting or furnishing to a consumer reporting agency any
401	401	24 information related to health care debt owed or alleged to be
402	402	25 owed by a consumer, including information concerning any
403	403	26 delinquent account action taken with respect to health care
404	404	27 debt owed or alleged to be owed by a consumer.
405	405	28 (b) If information related to health care debt or any portion of
406	406	29 health care debt is reported or furnished to a consumer reporting
407	407	30 agency in violation of this section:
408	408	31 (1) the consumer who owes or is alleged to owe the health care
409	409	32 debt is relieved from any liability to pay the amount of health
410	410	33 care debt reported or furnished; and
411	411	34 (2) the health care provider and any third party furnisher
412	412	35 engaged by the health care provider before or after the
413	413	36 reporting or furnishing of the information may not collect or
414	414	37 pursue the collection of the amount reported or furnished.
415	415	38 Sec. 12. (a) Subject to subsection (b), a consumer reporting
416	416	39 agency shall not record or retain in the file of a consumer any
417	417	40 information that is:
418	418	41 (1) related to health care debt incurred or alleged to be
419	419	42 incurred by the consumer; and
420	420	2024 IN 276—LS 6754/DI 101 9
421	421	1 (2) reported or furnished to the consumer reporting agency
422	422	2 after June 30, 2024.
423	423	3 (b) If a consumer reporting agency receives a request from a
424	424	4 consumer to delete any record of health care debt maintained in
425	425	5 the file of the consumer, the consumer reporting agency shall, not
426	426	6 later than five (5) business days after receiving the request, take all
427	427	7 lawful and reasonable actions to delete, or cause to be deleted,
428	428	8 from the consumer's file the record of the health care debt,
429	429	9 regardless of when the health care debt was reported or furnished
430	430	10 to the consumer reporting agency. A consumer reporting agency
431	431	11 may:
432	432	12 (1) prescribe the form and manner in which a consumer must
433	433	13 submit to the consumer reporting agency a request under this
434	434	14 subsection; and
435	435	15 (2) require the consumer to furnish proper identification in
436	436	16 connection with submitting the request.
437	437	17 A consumer reporting agency may not impose any fee or other
438	438	18 charge on any consumer in connection with fulfilling a request
439	439	19 submitted under this subsection.
440	440	20 Sec. 13. (a) This section applies to health care debt that is
441	441	21 incurred by a consumer after June 30, 2024.
442	442	22 (b) Notwithstanding any other law, a health care provider may
443	443	23 not do either of the following:
444	444	24 (1) Charge or collect interest on the unpaid balances of health
445	445	25 care debt at a rate that exceeds an annual rate of nine percent
446	446	26 (9%).
447	447	27 (2) Initiate any delinquent account action with respect to
448	448	28 health care debt during the pendency of an appeal by the
449	449	29 consumer for the denial of insurance or other third party
450	450	30 coverage for the health care services, products, or devices
451	451	31 with respect to which the health care debt was incurred.
452	452	32 Sec. 14. A creditor shall not obtain or use medical information
453	453	33 (as defined in 15 U.S.C. 1681a(i)) pertaining to a consumer in
454	454	34 connection with any determination of the consumer's eligibility, or
455	455	35 continued eligibility, for credit, as set forth in 15 U.S.C.
456	456	36 1681b(g)(2).
457	457	37 Sec. 15. A person who violates this chapter commits a deceptive
458	458	38 act that is actionable under IC 24-5-0.5 only by the attorney
459	459	39 general under IC 24-5-0.5-4(c).
460	460	40 Sec. 16. (a) The federal Fair Credit Reporting Act (15 U.S.C.
461	461	41 1681 et seq.) does not exempt:
462	462	42 (1) a health care provider;
463	463	2024 IN 276—LS 6754/DI 101 10
464	464	1 (2) a creditor;
465	465	2 (3) a third party furnisher; or
466	466	3 (4) a consumer reporting agency;
467	467	4 subject to this chapter from complying with this chapter, except to
468	468	5 the extent that this chapter is inconsistent with any provision of the
469	469	6 federal Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), and then
470	470	7 only to the extent of the inconsistency, as provided in 15 U.S.C.
471	471	8 1681t(a).
472	472	9 (b) This chapter does not annul, alter, or affect any rights and
473	473	10 remedies available to a consumer under the federal Fair Credit
474	474	11 Reporting Act (15 U.S.C. 1681 et seq.), including:
475	475	12 (1) limitations on the furnishing of medical information (as
476	476	13 defined in 15 U.S.C. 1681a(i)) about a consumer by a
477	477	14 consumer reporting agency under 15 U.S.C. 1681b(g);
478	478	15 (2) the right to request information in the consumer's file
479	479	16 under 15 U.S.C. 1681g;
480	480	17 (3) the right to dispute the completeness or accuracy of any
481	481	18 item of information in the consumer's file under 15 U.S.C.
482	482	19 1681i;
483	483	20 (4) any applicable damages, costs, and attorney's fees
484	484	21 available to the consumer under:
485	485	22 (A) 15 U.S.C. 1681n for a person's willful noncompliance
486	486	23 with the federal act; or
487	487	24 (B) 15 U.S.C. 1681o for a person's negligent noncompliance
488	488	25 with the federal act; and
489	489	26 (5) any other applicable rights and remedies available to the
490	490	27 consumer under the federal act.
491	491	28 Sec. 17. (a) This chapter does not annul, alter, or affect any
492	492	29 obligations or duties of:
493	493	30 (1) a health care provider;
494	494	31 (2) a creditor;
495	495	32 (3) a third party furnisher; or
496	496	33 (4) a consumer reporting agency;
497	497	34 under the federal Health Insurance Portability and Accountability
498	498	35 Act (HIPAA) (P.L. 104-191) with respect to a consumer.
499	499	36 (b) This chapter does not annul, alter, or affect any rights of a
500	500	37 consumer under the federal Health Insurance Portability and
501	501	38 Accountability Act (HIPAA) (P.L. 104-191).
502	502	39 SECTION 6. IC 28-9-2-3.5 IS ADDED TO THE INDIANA CODE
503	503	40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
504	504	41 UPON PASSAGE]: Sec. 3.5. "Consumer" means an individual
505	505	42 whose principal residence is in Indiana. The term includes the
506	506	2024 IN 276—LS 6754/DI 101 11
507	507	1 following:
508	508	2 (1) A protected consumer (as defined in IC 24-5-24.5-4).
509	509	3 (2) A representative acting on behalf of a protected consumer
510	510	4 (as defined in IC 24-5-24.5-4).
511	511	5 SECTION 7. IC 28-9-2-6.5 IS ADDED TO THE INDIANA CODE
512	512	6 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
513	513	7 UPON PASSAGE]: Sec. 6.5. (a) "Health care debt" means an
514	514	8 obligation or an alleged obligation of a consumer to pay an amount
515	515	9 related to the receipt of health care services, products, or devices
516	516	10 provided to a person by a health care provider.
517	517	11 (b) The term does not include debt charged to a credit card
518	518	12 unless the credit card is issued under:
519	519	13 (1) an open-end plan; or
520	520	14 (2) a closed-end plan;
521	521	15 offered specifically for the payment of health care services,
522	522	16 products, or devices provided to a person.
523	523	17 SECTION 8. IC 28-9-2-6.6 IS ADDED TO THE INDIANA CODE
524	524	18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
525	525	19 UPON PASSAGE]: Sec. 6.6. "Health care provider" means:
526	526	20 (1) a hospital or facility listed in IC 16-39-7-1(a)(13); or
527	527	21 (2) a provider of ambulance services (as defined in
528	528	22 IC 16-18-2-13.4).
529	529	23 The term includes an affiliate, officer, agent, or employee of a
530	530	24 person described in subdivision (1) or (2).
531	531	25 SECTION 9. IC 28-9-3-1 IS AMENDED TO READ AS FOLLOWS
532	532	26 [EFFECTIVE UPON PASSAGE]: Sec. 1. Except upon the conditions
533	533	27 specified in sections 3 and 4 of this chapter, and subject to the
534	534	28 prohibition set forth in section 1.5 of this chapter with respect to an
535	535	29 adverse claim based on health care debt owed or alleged to be owed
536	536	30 by a consumer, notice to a depository financial institution of an
537	537	31 adverse claim does not require the depository financial institution to:
538	538	32 (1) recognize the adverse claim in any manner; or
539	539	33 (2) place a hold on, or otherwise restrict withdrawal of funds
540	540	34 from, a deposit account.
541	541	35 SECTION 10. IC 28-9-3-1.5 IS ADDED TO THE INDIANA CODE
542	542	36 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
543	543	37 UPON PASSAGE]: Sec. 1.5. (a) This section applies to an adverse
544	544	38 claim that is based upon:
545	545	39 (1) any amount of health care debt owed or alleged to be owed
546	546	40 by a consumer who has an interest in a deposit account, either
547	547	41 jointly or with another person; or
548	548	42 (2) an action:
549	549	2024 IN 276—LS 6754/DI 101 12
550	550	1 (A) against a consumer who has an interest in a deposit
551	551	2 account, either jointly or with another person; and
552	552	3 (B) in which a judgment has been entered;
553	553	4 any amount of the judgment that represents health care debt
554	554	5 determined to be owed by the consumer.
555	555	6 (b) If a depository financial institution receives notice of a claim
556	556	7 described in subsection (a), the depository financial institution may
557	557	8 not:
558	558	9 (1) recognize the adverse claim in any manner; or
559	559	10 (2) place a hold on, or otherwise restrict withdrawal of funds
560	560	11 from, a deposit account in which the consumer who is the
561	561	12 subject of the adverse claim has an interest, either jointly or
562	562	13 with another person.
563	563	14 SECTION 11. IC 32-28-15 IS ADDED TO THE INDIANA CODE
564	564	15 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
565	565	16 UPON PASSAGE]:
566	566	17 Chapter 15. Prohibition Against Lien on Principal Residence of
567	567	18 a Consumer for Health Care Debt
568	568	19 Sec. 1. (a) As used in this chapter, "consumer" means an
569	569	20 individual whose principal residence is in Indiana.
570	570	21 (b) The term includes the following:
571	571	22 (1) A protected consumer (as defined in IC 24-5-24.5-4).
572	572	23 (2) A representative acting on behalf of a protected consumer
573	573	24 (as defined in IC 24-5-24.5-4).
574	574	25 Sec. 2. (a) As used in this chapter, "health care debt" means an
575	575	26 obligation or an alleged obligation of a consumer to pay an amount
576	576	27 related to the receipt of health care services, products, or devices
577	577	28 provided to a person by a health care provider.
578	578	29 (b) The term does not include debt charged to a credit card
579	579	30 unless the credit card is issued under:
580	580	31 (1) an open-end plan; or
581	581	32 (2) a closed-end plan;
582	582	33 offered specifically for the payment of health care services,
583	583	34 products, or devices provided to a person.
584	584	35 Sec. 3. As used in this chapter, "health care provider" means:
585	585	36 (1) a hospital or facility listed in IC 16-39-7-1(a)(13); or
586	586	37 (2) a provider of ambulance services (as defined in
587	587	38 IC 16-18-2-13.4).
588	588	39 The term includes an affiliate, officer, agent, or employee of a
589	589	40 person described in subdivision (1) or (2).
590	590	41 Sec. 4. As used in this chapter, "principal residence", with
591	591	42 respect to a consumer, means real or personal property that:
592	592	2024 IN 276—LS 6754/DI 101 13
593	593	1 (1) is located in Indiana;
594	594	2 (2) the consumer:
595	595	3 (A) owns; or
596	596	4 (B) is buying under contract;
597	597	5 whether solely or jointly with another person; and
598	598	6 (3) constitutes the principal place of residence of:
599	599	7 (A) the consumer; or
600	600	8 (B) a dependent of the consumer.
601	601	9 Sec. 5. (a) Notwithstanding any other law:
602	602	10 (1) any amount of health care debt owed or alleged to be owed
603	603	11 by a consumer; or
604	604	12 (2) in an action against a consumer in which a judgment has
605	605	13 been entered, any amount of the judgment that represents
606	606	14 health care debt determined to be owed by the consumer;
607	607	15 does not constitute a lien against the consumer's principal
608	608	16 residence.
609	609	17 (b) A person having any ownership or other interest in an
610	610	18 amount described in subsection (a)(1) or (a)(2) may not assert,
611	611	19 claim, enter, or enforce a lien against the consumer's principal
612	612	20 residence.
613	613	21 SECTION 12. IC 32-33-22 IS ADDED TO THE INDIANA CODE
614	614	22 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
615	615	23 UPON PASSAGE]:
616	616	24 Chapter 22. Prohibition Against Lien on Certain Personal
617	617	25 Property of a Consumer for Health Care Debt
618	618	26 Sec. 1. (a) As used in this chapter, "consumer" means an
619	619	27 individual whose principal residence is in Indiana.
620	620	28 (b) The term includes the following:
621	621	29 (1) A protected consumer (as defined in IC 24-5-24.5-4).
622	622	30 (2) A representative acting on behalf of a protected consumer
623	623	31 (as defined in IC 24-5-24.5-4).
624	624	32 Sec. 2. (a) As used in this chapter, "health care debt" means an
625	625	33 obligation or an alleged obligation of a consumer to pay an amount
626	626	34 related to the receipt of health care services, products, or devices
627	627	35 provided to a person by a health care provider.
628	628	36 (b) The term does not include debt charged to a credit card
629	629	37 unless the credit card is issued under:
630	630	38 (1) an open-end plan; or
631	631	39 (2) a closed-end plan;
632	632	40 offered specifically for the payment of health care services,
633	633	41 products, or devices provided to a person.
634	634	42 Sec. 3. As used in this chapter, "health care provider" means:
635	635	2024 IN 276—LS 6754/DI 101 14
636	636	1 (1) a hospital or facility listed in IC 16-39-7-1(a)(13); or
637	637	2 (2) a provider of ambulance services (as defined in
638	638	3 IC 16-18-2-13.4).
639	639	4 The term includes an affiliate, officer, agent, or employee of a
640	640	5 person described in subdivision (1) or (2).
641	641	6 Sec. 4. As used in this chapter, "personal property", with
642	642	7 respect to a consumer, means any of the following that the
643	643	8 consumer owns, or has an ownership interest in, whether solely or
644	644	9 jointly with another person:
645	645	10 (1) A motor vehicle (as defined in IC 9-13-2-105(a)) that is
646	646	11 used as the consumer's primary vehicle for transporting the
647	647	12 consumer to and from work, school, or other daily activities.
648	648	13 (2) A deposit account (as defined in IC 28-9-2-5).
649	649	14 (3) Any other:
650	650	15 (A) tangible personal property, to the extent of the amount
651	651	16 of the exemption allowed debtors under
652	652	17 IC 34-55-10-2(c)(2) for tangible personal property, as
653	653	18 amended by rules adopted by the department of financial
654	654	19 institutions under IC 34-55-10-2.5; or
655	655	20 (B) intangible personal property (including choses in
656	656	21 action and cash, but excluding debts owing and income
657	657	22 owing), to the extent of the amount of the exemption
658	658	23 allowed debtors under IC 34-55-10-2(c)(3) for intangible
659	659	24 personal property, as amended by rules adopted by the
660	660	25 department of financial institutions under IC 34-55-10-2.5.
661	661	26 Sec. 5. (a) Notwithstanding any other law:
662	662	27 (1) any amount of health care debt owed or alleged to be owed
663	663	28 by a consumer; or
664	664	29 (2) in an action against a consumer in which a judgment has
665	665	30 been entered, any amount of the judgment that represents
666	666	31 health care debt determined to be owed by the consumer;
667	667	32 does not constitute a lien against the personal property of the
668	668	33 consumer.
669	669	34 (b) A person having any ownership or other interest in an
670	670	35 amount described in subsection (a)(1) or (a)(2) may not assert,
671	671	36 claim, enter, or enforce a lien against the consumer's personal
672	672	37 property.
673	673	38 SECTION 13. IC 34-25-1-1.5 IS ADDED TO THE INDIANA
674	674	39 CODE AS A NEW SECTION TO READ AS FOLLOWS
675	675	40 [EFFECTIVE UPON PASSAGE]: Sec. 1.5. (a) As used in this section,
676	676	41 "consumer" means an individual whose principal residence is in
677	677	42 Indiana. The term includes the following:
678	678	2024 IN 276—LS 6754/DI 101 15
679	679	1 (1) A protected consumer (as defined in IC 24-5-24.5-4).
680	680	2 (2) A representative acting on behalf of a protected consumer
681	681	3 (as defined in IC 24-5-24.5-4).
682	682	4 (b) As used in this section, "health care debt" means an
683	683	5 obligation or an alleged obligation of a consumer to pay an amount
684	684	6 related to the receipt of health care services, products, or devices
685	685	7 provided to a person by a health care provider. The term does not
686	686	8 include debt charged to a credit card unless the credit card is
687	687	9 issued under:
688	688	10 (1) an open-end plan; or
689	689	11 (2) a closed-end plan;
690	690	12 offered specifically for the payment of health care services,
691	691	13 products, or devices provided to a person.
692	692	14 (c) As used in this section, "health care provider" means:
693	693	15 (1) a hospital or facility listed in IC 16-39-7-1(a)(13); or
694	694	16 (2) a provider of ambulance services (as defined in
695	695	17 IC 16-18-2-13.4).
696	696	18 The term includes an affiliate, officer, agent, or employee of a
697	697	19 person described in subdivision (1) or (2).
698	698	20 (d) In any action filed, in a court of competent jurisdiction in
699	699	21 Indiana, for the recovery of health care debt owed or alleged to be
700	700	22 owed by a consumer, the court does not have and shall not
701	701	23 entertain jurisdiction in any:
702	702	24 (1) action of attachment under IC 34-25-2 against the real or
703	703	25 personal property of the consumer; or
704	704	26 (2) action of garnishment under IC 34-25-3;
705	705	27 upon, or any time after, the filing of the complaint in the action for
706	706	28 the recovery of health care debt owed or alleged to be owed by the
707	707	29 consumer.
708	708	30 SECTION 14. IC 34-55-9-0.5 IS ADDED TO THE INDIANA
709	709	31 CODE AS A NEW SECTION TO READ AS FOLLOWS
710	710	32 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. As used in this chapter,
711	711	33 the following terms have the following meanings:
712	712	34 (1) "Consumer" means an individual whose principal
713	713	35 residence is in Indiana. The term includes the following:
714	714	36 (A) A protected consumer (as defined in IC 24-5-24.5-4).
715	715	37 (B) A representative acting on behalf of a protected
716	716	38 consumer (as defined in IC 24-5-24.5-4).
717	717	39 (2) "Health care debt" means an obligation or an alleged
718	718	40 obligation of a consumer to pay an amount related to the
719	719	41 receipt of health care services, products, or devices provided
720	720	42 to a person by a health care provider. The term does not
721	721	2024 IN 276—LS 6754/DI 101 16
722	722	1 include debt charged to a credit card unless the credit card is
723	723	2 issued under:
724	724	3 (A) an open-end plan; or
725	725	4 (B) a closed-end plan;
726	726	5 offered specifically for the payment of health care services,
727	727	6 products, or devices provided to a person.
728	728	7 (3) "Health care provider" means:
729	729	8 (A) a hospital or facility listed in IC 16-39-7-1(a)(13); or
730	730	9 (B) a provider of ambulance services (as defined in
731	731	10 IC 16-18-2-13.4).
732	732	11 The term includes an affiliate, officer, agent, or employee of
733	733	12 a person described in clause (A) or (B).
734	734	13 (4) "Principal residence", with respect to a consumer, means
735	735	14 real or personal property that:
736	736	15 (A) is located in Indiana;
737	737	16 (B) the consumer:
738	738	17 (i) owns; or
739	739	18 (ii) is buying under contract;
740	740	19 whether solely or jointly with another person; and
741	741	20 (C) constitutes the principal place of residence of:
742	742	21 (i) the consumer; or
743	743	22 (ii) a dependent of the consumer.
744	744	23 SECTION 15. IC 34-55-9-1 IS AMENDED TO READ AS
745	745	24 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Except as
746	746	25 provided in subsection (b), the following real estate is liable to all
747	747	26 judgments and attachments and to be sold on execution against the
748	748	27 debtor owing owning the real estate or for whose use the real estate is
749	749	28 held:
750	750	29 (1) All lands of the judgment debtor, whether in possession,
751	751	30 remainder, or reversion.
752	752	31 (2) All rights of redeeming mortgaged lands and all lands held by
753	753	32 virtue of any land office certificate.
754	754	33 (3) Lands or any estate or interest in land held by anyone in trust
755	755	34 for or to the use of another.
756	756	35 (4) All chattels real of the judgment debtor.
757	757	36 (b) In any action filed, in a court of competent jurisdiction in
758	758	37 Indiana, for the recovery of health care debt owed or alleged to be
759	759	38 owed by a consumer, the principal residence of the consumer is not
760	760	39 liable to judgment or attachment or to be sold on execution against
761	761	40 the consumer.
762	762	41 SECTION 16. IC 34-55-9-2 IS AMENDED TO READ AS
763	763	42 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) Except as
764	764	2024 IN 276—LS 6754/DI 101 17
765	765	1 provided in subsection (b), all final judgments for the recovery of
766	766	2 money or costs in the circuit court and other courts of record of general
767	767	3 original jurisdiction in Indiana, whether state or federal, constitute a
768	768	4 lien upon real estate and chattels real liable to execution in the county
769	769	5 where the judgment has been duly entered and indexed in the judgment
770	770	6 docket as provided by law:
771	771	7 (1) after the time the judgment was entered and indexed; and
772	772	8 (2) until the expiration of ten (10) years after the rendition of the
773	773	9 judgment;
774	774	10 exclusive of any time during which the party was restrained from
775	775	11 proceeding on the lien by an appeal, an injunction, the death of the
776	776	12 defendant, or the agreement of the parties entered of record.
777	777	13 (b) A final judgment for the recovery of money or costs in any
778	778	14 action filed, in a court of competent jurisdiction in Indiana, for the
779	779	15 recovery of health care debt owed or alleged to be owed by a
780	780	16 consumer does not constitute a lien upon the principal residence of
781	781	17 the consumer.
782	782	18 SECTION 17. An emergency is declared for this act.
783	783	2024 IN 276—LS 6754/DI 101