Indiana House Bill 1271 (2026) — Payment of Health Claims
Indiana · Ind. House Enrolled Act 1271 (2026 Reg. Sess.), eff. July 1, 2026
Indiana bars health insurers from relying on an automated process or artificial intelligence as the only reason for downcoding a claim on medical-necessity grounds; a qualified health professional must review the patient's medical record before such a downcode is applied. Health care providers likewise may not use AI to submit a claim without a human reviewing the record. Insurers must also tell providers when AI played a role in an adverse prior-authorization decision or a downcode, and providers keep appeal rights.
Technical detail
HB 1271 (P.L. 2026, eff. July 1, 2026) adds a chapter to IC Title 27 on downcoding, prohibiting an insurer from using an automated system or AI as the sole basis to downcode a medical-necessity claim without human review of the medical record, and requiring disclosure when AI is used for an adverse prior-authorization or downcoding determination.
Who is protected: Health care providers and the insured patients whose claims are downcoded or denied.
Who must comply: Health insurers and other payers operating in Indiana, plus health care providers submitting claims.
Key facts
| Jurisdiction | Indiana |
|---|---|
| Level | State |
| Status | In effect |
| Protection strength | Limited protection |
| Effective date | 2026-07-01 |
| Enacted | 2026-03-13 |
| Citation | Ind. House Enrolled Act 1271 (2026 Reg. Sess.), eff. July 1, 2026 |
| Enforced by | Indiana Department of Insurance |
| Penalties | No new penalty is created; the existing enforcement and penalty provisions of the Indiana insurance code apply. |
| Topics | healthcare AI · insurance AI · automated decision-making |
| Last verified | 2026-07-08 |
| Official source | Indiana General Assembly — House Bill 1271 (Payment of health claims), 2026 Regular Session ↗ |
More AI rules in Indiana
- Indiana HB 1271 (AI claims downcoding) · In effect
- Indiana Consumer Data Protection Act · In effect
- IN NCII Deepfake Law · In effect
- Indiana SB 256 (foreign-adversary AI vendor & student rules) · In effect
- State of Indiana Artificial Intelligence Policy · In effect
Related healthcare AI rules elsewhere
- Missouri AI Therapy Chatbot Ban (SB 1019) · Enacted (not yet in effect)
- PA v. Character.AI (Fake Psychiatrist Chatbot) · Blocked / in litigation
- RI Therapy Chatbot Ban (2026) · In effect
- RI AI Companion Self-Harm Safety (2026) · In effect
- Georgia SB 544 (health insurer AI) · Enacted (not yet in effect)
- Utah SB 319 (health insurer AI) · Enacted (not yet in effect)
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