Collection of medical debt; noncompliance; determination; notification; suspension; affirmative defense; remedy
Ind. Code § 16-21-16-3
in effectSec. 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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/16Fetched: 10/17/2026