SB 85 Indiana Senate · 2026 Regular Session

Health care debt and costs.

Summary
Authorizes the attorney general to enforce provisions concerning health care debt wage garnishment and principal residence lien restrictions and establish a complaint process. Requires hospitals to do the following: (1) Offer a person who meets certain income guidelines and has received health services the opportunity to pay the charges through a payment plan that satisfies certain requirements. (2) Develop a written notice about a charity care program operated by the hospital, provide the notice to patients, and post the notice. (3) Include certain information concerning financial assistance on a billing statement. (4) Requires a hospital that reports an annual gross patient revenue of at least $20,000,000 to provide written notice and information to a person who has requested an eligibility determination concerning a payment plan or charity care. Provides that the unpaid earnings of a consumer who meets specified income eligibility requirements may not be attached by garnishment if an individual makes 200% of the federal income poverty level or less, and limits the amount to be garnished over a certain amount of the individual's disposable earnings in satisfaction of: (1) health care debt owed or alleged to be owed by the consumer; or (2) any amount of the judgment that represents health care debt determined to be owed by the consumer. Provides that: (1) health care debt owed or alleged to be owed by a consumer; or (2) in an action against a consumer in which a judgment has been entered, the amount of the judgment that represents health care debt determined to be owed by the consumer; does not constitute a lien against the consumer's principal residence for a consumer. Requires the disclosure of whether a debt is a health care debt in the execution of a judgment. Provides that in any action filed in Indiana for the recovery of health care debt owed or alleged to be owed by a consumer, the principal residence of the consumer is not liable to judgment or attachment or to be sold on execution against the consumer.
Bill status passed 3 of 5 stages cleared
Introduction
Dec 2025
Committee Review
Jan 2026
Senate Passage
Jan 2026
House Passage
Governor
Introduced Dec 8, 2025 Last action Feb 2, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Senate Bill (S) Senate Bill (H) · 3 edits
MINOR
This bill was amended to clarify its focus on health care debt specifically, rather than general wage garnishment. The changes add explicit definitions for 'medical creditor' and 'medical debt collector,' exclude financial institutions from these definitions, and clarify that the principal residence exemption applies specifically to health care debt recovery actions. These modifications make the bill's protections more targeted and precise.
Scope change
The bill's scope was narrowed and clarified to specifically address health care debt rather than general wage garnishment, and financial institutions are now explicitly excluded from the definition of medical creditors.
DEFINITION

Added explicit definitions for 'medical creditor' and 'medical debt collector' and excluded financial institutions from these definitions to clarify who is subject to the bill's restrictions.

ENFORCEMENT

Clarified that wage garnishment restrictions apply specifically to health care debt, and the principal residence exemption applies only to actions filed for recovery of health care debt.

TECHNICAL

Updated the bill title and digest to reflect the January 23, 2026 amendment and changed the bill number designation from 'Introduced Senate Bill' to 'Senate Bill' to reflect its amended status.

Floor votes · Senate Jan 29, 2026

How they voted

3215
Passed · 1 other
Total votes 48
Jan 29, 2026
D Democratic9
9 Yea
100% Yea
R Republican39
23 Yea 15 Nay 1
58% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
26
Key actions
2
Committee
1
Jan 29, 2026
Upper · Passed
Third reading: passed; Roll Call 135: yeas 33, nays 15
upper
Jan 22, 2026
Upper · Passed
Committee report: amend do pass, adopted
upper
3 primary · 17 co-sponsors

Sponsors