IN HB1271 – Payment of Health Claims

INLawState

Date Passed

3/4/2026

Effective Date

3/4/2026

Summary

Prohibits certain downcoding practices in health insurance claims and restricts the use of automated processes, systems, or tools, including artificial intelligence, in claim submission and adjudication without appropriate review.

Healthcare Implications

Would directly impact payer and provider use of AI in claims processing by limiting automated downcoding and requiring human oversight in utilization management workflows. Health plans and providers will need to adjust claims review, documentation, and audit processes to ensure compliance.

Impact Level

Medium

Keywords

Safety & Risk; Transparency & Governance

Stakeholders

Payers & Purchasers; Providers & Health Systems; Developers & Vendors; Regulators & Government