SB 173 Indiana Senate · 2026 Regular Session

Health care matters.

Summary
Prohibits: (1) the state employee health plan; (2) the Medicaid program; (3) an accident and sickness insurance policy; and (4) a health maintenance organization individual or group contract; from imposing a time limit on the amount of anesthesia time for a medical procedure or otherwise restricting or excluding coverage or payment of anesthesia time. Modifies the definitions of "charity care" and "community benefits" for purposes of certain hospital reporting requirements. Requires additional reporting of information by nonprofit hospitals to the Indiana department of health (state department). Requires the report to be posted on the nonprofit hospital's website and the state department's website. Increases the penalty for failure to file the report and changes the time frame in which the penalty may be assessed. Specifies that any penalty be deposited in the local public health fund. Allows for certain practitioners to provide neuroplastogen treatment concerning qualified patients with life threatening conditions if certain requirements are met. Allows for research to be conducted on neuroplastogen access. Requires reporting of adverse events and annual reporting of patient statistical information concerning the neuroplastogen treatment. Provides for immunity when treating using neuroplastogens. Requires a clinical peer to disclose certain information for a peer to peer review of an adverse determination. Prohibits a utilization review entity from using artificial intelligence as the primary means for making adverse determinations. Prohibits a health insurer from engaging in certain downcoding practices and sets forth conditions for downcoding a claim. Authorizes the department of insurance to enforce the downcoding requirements and impose certain penalties for a violation. Prohibits an insurer, pharmacy benefit manager, or other administrator of pharmacy benefits from designating a prescription drug as a specialty drug unless certain conditions are met.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 5, 2026 Last action Jan 15, 2026
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What changed between versions

Introduced Senate Bill (S) Senate Bill (S) · 5 edits
MODERATE
SB 173 was updated from an introduced version to a Senate Bill version, incorporating amendments and committee actions. The bill's digest was revised to reflect new provisions and updated effective dates, with the bill now being reassigned to the Appropriations Committee. The substantive content remains focused on health care matters including neuroplastogen treatment, pharmacy benefit manager regulations, and property tax exemptions.
Scope change
The bill's scope remains focused on health care matters, but the procedural status changed from 'Introduced' to 'Senate Bill' with amendments and committee reassignment. The effective date was updated from January 5, 2026 to January 16, 2026 for certain provisions.
TIMELINE

The bill's effective date was updated from January 5, 2026 to January 16, 2026, and the digest was updated to January 14, 2026.

ENFORCEMENT

The bill was reassigned from the Committee on Health and Provider Services to the Committee on Appropriations, changing which legislative body will review funding and budget implications.

REQUIREMENT

New provisions were added requiring clinical peers to disclose information for peer-to-peer reviews of adverse determinations, and prohibiting utilization review entities from using artificial intelligence as the primary means for making adverse determinations.

New restrictions were added prohibiting insurers, pharmacy benefit managers, or other pharmacy benefit administrators from designating prescription drugs as specialty drugs unless certain conditions are met.

TECHNICAL

The digest citations were simplified from specific code sections to broader chapter references, and the bill number was updated from 'Introduced Senate Bill' to 'Senate Bill' with updated legislative session information.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
5
Key actions
1
Committee
1
Jan 15, 2026
Upper · Passed
Committee report: amend do pass adopted; reassigned to Committee on Appropriations
upper
3 primary · 0 co-sponsors

Sponsors