Indiana 2025 Regular Session

Indiana House Bill HB1242 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1242
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 32-28-16; IC 34-25-1-1.5; IC 34-55-9.
7	7	Synopsis: Prohibition on lien for medical debt. Provides that: (1) any
8	8	amount of health care debt owed or alleged to be owed by a consumer;
9	9	or (2) in an action against a consumer in which a judgment has been
10	10	entered, any amount of the judgment that represents health care debt
11	11	determined to be owed by the consumer; does not constitute a lien
12	12	against the consumer's principal residence. Provides that in any action
13	13	filed, in a court of competent jurisdiction in Indiana, for the recovery
14	14	of health care debt owed or alleged to be owed by a consumer, the
15	15	principal residence of the consumer is not liable to judgment or
16	16	attachment or to be sold on execution against the consumer.
17	17	Effective: Upon passage.
18	18	Summers
19	19	January 9, 2025, read first time and referred to Committee on Financial Institutions.
20	20	2025 IN 1242—LS 6009/DI 101 Introduced
21	21	First Regular Session of the 124th General Assembly (2025)
22	22	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
23	23	Constitution) is being amended, the text of the existing provision will appear in this style type,
24	24	additions will appear in this style type, and deletions will appear in this style type.
25	25	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
26	26	provision adopted), the text of the new provision will appear in this style type. Also, the
27	27	word NEW will appear in that style type in the introductory clause of each SECTION that adds
28	28	a new provision to the Indiana Code or the Indiana Constitution.
29	29	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
30	30	between statutes enacted by the 2024 Regular Session of the General Assembly.
31	31	HOUSE BILL No. 1242
32	32	A BILL FOR AN ACT to amend the Indiana Code concerning
33	33	property.
34	34	Be it enacted by the General Assembly of the State of Indiana:
35	35	1 SECTION 1. IC 32-28-16 IS ADDED TO THE INDIANA CODE
36	36	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
37	37	3 UPON PASSAGE]:
38	38	4 Chapter 16. Prohibition Against Lien on Principal Residence of
39	39	5 a Consumer for Health Care Debt
40	40	6 Sec. 1. (a) As used in this chapter, "consumer" means an
41	41	7 individual whose principal residence is in Indiana.
42	42	8 (b) The term includes the following:
43	43	9 (1) A protected consumer (as defined in IC 24-5-24.5-4).
44	44	10 (2) A representative acting on behalf of a protected consumer
45	45	11 (as defined in IC 24-5-24.5-4).
46	46	12 Sec. 2. (a) As used in this chapter, "health care debt" means an
47	47	13 obligation or an alleged obligation of a consumer to pay an amount
48	48	14 related to the receipt of health care services, products, or devices
49	49	15 provided to a person by a health care provider.
50	50	16 (b) The term does not include debt charged to a credit card
51	51	17 unless the credit card is issued under:
52	52	2025 IN 1242—LS 6009/DI 101 2
53	53	1 (1) an open-end plan; or
54	54	2 (2) a closed-end plan;
55	55	3 offered specifically for the payment of health care services,
56	56	4 products, or devices provided to a person.
57	57	5 Sec. 3. As used in this chapter, "health care provider" means:
58	58	6 (1) a person listed in IC 16-39-7-1(a)(1) through
59	59	7 IC 16-39-7-1(a)(13); or
60	60	8 (2) a provider of ambulance services (as defined in
61	61	9 IC 16-18-2-13.4).
62	62	10 The term includes an affiliate, officer, agent, or employee of a
63	63	11 person described in subdivision (1) or (2).
64	64	12 Sec. 4. As used in this chapter, "principal residence", with
65	65	13 respect to a consumer, means real or personal property that:
66	66	14 (1) is located in Indiana;
67	67	15 (2) the consumer:
68	68	16 (A) owns; or
69	69	17 (B) is buying under contract;
70	70	18 whether solely or jointly with another person; and
71	71	19 (3) constitutes the principal place of residence of:
72	72	20 (A) the consumer; or
73	73	21 (B) a dependent of the consumer.
74	74	22 Sec. 5. (a) Notwithstanding any other law:
75	75	23 (1) any amount of health care debt owed or alleged to be owed
76	76	24 by a consumer; or
77	77	25 (2) in an action against a consumer in which a judgment has
78	78	26 been entered, any amount of the judgment that represents
79	79	27 health care debt determined to be owed by the consumer;
80	80	28 does not constitute a lien against the consumer's principal
81	81	29 residence.
82	82	30 (b) A person having any ownership or other interest in an
83	83	31 amount described in subsection (a)(1) or (a)(2) may not assert,
84	84	32 claim, enter, or enforce a lien against the consumer's principal
85	85	33 residence.
86	86	34 SECTION 2. IC 34-25-1-1.5 IS ADDED TO THE INDIANA CODE
87	87	35 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
88	88	36 UPON PASSAGE]: Sec. 1.5. (a) As used in this section, "consumer"
89	89	37 means an individual whose principal residence is in Indiana. The
90	90	38 term includes the following:
91	91	39 (1) A protected consumer (as defined in IC 24-5-24.5-4).
92	92	40 (2) A representative acting on behalf of a protected consumer
93	93	41 (as defined in IC 24-5-24.5-4).
94	94	42 (b) As used in this section, "health care debt" means an
95	95	2025 IN 1242—LS 6009/DI 101 3
96	96	1 obligation or an alleged obligation of a consumer to pay an amount
97	97	2 related to the receipt of health care services, products, or devices
98	98	3 provided to a person by a health care provider. The term does not
99	99	4 include debt charged to a credit card unless the credit card is
100	100	5 issued under:
101	101	6 (1) an open-end plan; or
102	102	7 (2) a closed-end plan;
103	103	8 offered specifically for the payment of health care services,
104	104	9 products, or devices provided to a person.
105	105	10 (c) As used in this section, "health care provider" means:
106	106	11 (1) a person listed in IC 16-39-7-1(a)(1) through
107	107	12 IC 16-39-7-1(a)(13); or
108	108	13 (2) a provider of ambulance services (as defined in
109	109	14 IC 16-18-2-13.4).
110	110	15 The term includes an affiliate, officer, agent, or employee of a
111	111	16 person described in subdivision (1) or (2).
112	112	17 (d) As used in this section, "principal residence", with respect
113	113	18 to a consumer, means real or personal property that:
114	114	19 (1) is located in Indiana;
115	115	20 (2) the consumer:
116	116	21 (A) owns; or
117	117	22 (B) is buying under contract;
118	118	23 whether solely or jointly with another person; and
119	119	24 (3) constitutes the principal place of residence of:
120	120	25 (A) the consumer; or
121	121	26 (B) a dependent of the consumer.
122	122	27 (e) In any action filed, in a court of competent jurisdiction in
123	123	28 Indiana, for the recovery of health care debt owed or alleged to be
124	124	29 owed by a consumer, the court does not have and shall not
125	125	30 entertain jurisdiction in any action of attachment under IC 34-25-2
126	126	31 against the principal residence of the consumer upon, or any time
127	127	32 after, the filing of the complaint in the action for the recovery of
128	128	33 health care debt owed or alleged to be owed by the consumer.
129	129	34 SECTION 3. IC 34-55-9-0.5 IS ADDED TO THE INDIANA CODE
130	130	35 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
131	131	36 UPON PASSAGE]: Sec. 0.5. As used in this chapter, the following
132	132	37 terms have the following meanings:
133	133	38 (1) "Consumer" means an individual whose principal
134	134	39 residence is in Indiana. The term includes the following:
135	135	40 (A) A protected consumer (as defined in IC 24-5-24.5-4).
136	136	41 (B) A representative acting on behalf of a protected
137	137	42 consumer (as defined in IC 24-5-24.5-4).
138	138	2025 IN 1242—LS 6009/DI 101 4
139	139	1 (2) "Health care debt" means an obligation or an alleged
140	140	2 obligation of a consumer to pay an amount related to the
141	141	3 receipt of health care services, products, or devices provided
142	142	4 to a person by a health care provider. The term does not
143	143	5 include debt charged to a credit card unless the credit card is
144	144	6 issued under:
145	145	7 (A) an open-end plan; or
146	146	8 (B) a closed-end plan;
147	147	9 offered specifically for the payment of health care services,
148	148	10 products, or devices provided to a person.
149	149	11 (3) "Health care provider" means:
150	150	12 (A) a person listed in IC 16-39-7-1(a)(1) through
151	151	13 IC 16-39-7-1(a)(13); or
152	152	14 (B) a provider of ambulance services (as defined in
153	153	15 IC 16-18-2-13.4).
154	154	16 The term includes an affiliate, officer, agent, or employee of
155	155	17 a person described in clause (A) or (B).
156	156	18 (4) "Principal residence", with respect to a consumer, means
157	157	19 real or personal property that:
158	158	20 (A) is located in Indiana;
159	159	21 (B) the consumer:
160	160	22 (i) owns; or
161	161	23 (ii) is buying under contract;
162	162	24 whether solely or jointly with another person; and
163	163	25 (C) constitutes the principal place of residence of:
164	164	26 (i) the consumer; or
165	165	27 (ii) a dependent of the consumer.
166	166	28 SECTION 4. IC 34-55-9-1 IS AMENDED TO READ AS
167	167	29 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Except as
168	168	30 provided in subsection (b), the following real estate is liable to all
169	169	31 judgments and attachments and to be sold on execution against the
170	170	32 debtor owing owning the real estate or for whose use the real estate is
171	171	33 held:
172	172	34 (1) All lands of the judgment debtor, whether in possession,
173	173	35 remainder, or reversion.
174	174	36 (2) All rights of redeeming mortgaged lands and all lands held by
175	175	37 virtue of any land office certificate.
176	176	38 (3) Lands or any estate or interest in land held by anyone in trust
177	177	39 for or to the use of another.
178	178	40 (4) All chattels real of the judgment debtor.
179	179	41 (b) In any action filed, in a court of competent jurisdiction in
180	180	42 Indiana, for the recovery of health care debt owed or alleged to be
181	181	2025 IN 1242—LS 6009/DI 101 5
182	182	1 owed by a consumer, the principal residence of the consumer is not
183	183	2 liable to judgment or attachment or to be sold on execution against
184	184	3 the consumer.
185	185	4 SECTION 5. IC 34-55-9-2 IS AMENDED TO READ AS
186	186	5 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) Except as
187	187	6 provided in subsection (b), all final judgments for the recovery of
188	188	7 money or costs in the circuit court and other courts of record of general
189	189	8 original jurisdiction in Indiana, whether state or federal, constitute a
190	190	9 lien upon real estate and chattels real liable to execution in the county
191	191	10 where the judgment has been duly entered and indexed in the judgment
192	192	11 docket as provided by law:
193	193	12 (1) after the time the judgment was entered and indexed; and
194	194	13 (2) until the expiration of ten (10) years after the rendition of the
195	195	14 judgment;
196	196	15 exclusive of any time during which the party was restrained from
197	197	16 proceeding on the lien by an appeal, an injunction, the death of the
198	198	17 defendant, or the agreement of the parties entered of record.
199	199	18 (b) A final judgment for the recovery of money or costs in any
200	200	19 action filed, in a court of competent jurisdiction in Indiana, for the
201	201	20 recovery of health care debt owed or alleged to be owed by a
202	202	21 consumer does not constitute a lien upon the principal residence of
203	203	22 the consumer.
204	204	23 SECTION 6. An emergency is declared for this act.
205	205	2025 IN 1242—LS 6009/DI 101