LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6009 NOTE PREPARED: Aug 29, 2024
BILL NUMBER: HB 1242 BILL AMENDED:
SUBJECT: Prohibition on Lien for Medical Debt.
FIRST AUTHOR: Rep. Summers BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill provides that: (1) any amount of health care debt owed or alleged to be
owed by a consumer; or (2) in an action against a consumer in which a judgment has been entered, any
amount of the judgment that represents health care debt determined to be owed by the consumer; does not
constitute a lien against the consumer's principal residence.
The bill also provides that in any action filed, in a court of competent jurisdiction in Indiana, for the recovery
of health care debt owed or alleged to be owed by a consumer, the principal residence of the consumer is not
liable to judgment or attachment or to be sold on execution against the consumer.
Effective Date: Upon passage.
Explanation of State Expenditures: Department of Insurance (DOI): The bill could decrease the DOI’s
workload to investigate and respond to medical billing insurance complaints as they relate to a property lien
resulting from health care debt. [The DOI is funded through a dedicated agency fund.]
Explanation of State Revenues: Court Fees: If fewer civil cases occur and court fees are collected, revenue
to the state General Fund will decrease. The total revenue per case would range between $100 and $122. The
amount deposited will vary depending on whether the case is filed in a court of record or a municipal court.
The following linked document describes the fees and distribution of the revenue: Court fees imposed in
civil, probate, and small claims cases.
Explanation of Local Expenditures:
Explanation of Local Revenues: Court Fees: If fewer cases occur, less revenue will be collected by certain
local units. If the case is filed in a court of record, the county will receive $32 and qualifying municipalities
will receive a share of $3. If the case is filed in a municipal court, the county receives $20, and the
municipality will receive $37. The following linked document describes the fees and distribution of the
revenue: Court fees imposed in civil, probate, and small claims cases.
HB 1242 1 State Agencies Affected: Department of Insurance.
Local Agencies Affected: Trial courts, city and town courts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Karen Rossen, 317-234-2106.
HB 1242 2