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Committee advances SB 225 to floor, tying hospital debt collection to transparency and requiring closure notice
Summary
The committee voted to send SB 225 (medical‑debt restrictions and advanced‑notice requirements for hospital closures/service‑line reductions) to the floor 11–0 after testimony from employers, hospital representatives and administration officials; amendments set a 60‑day past‑due definition and a 120‑day closure notice in some provisions.
The Senate Health and Provider Services Committee unanimously reported Senate Bill 225 to the floor, 11–0, after adopting amendments that refine the bill’s definitions and notice requirements.
Sponsor and staff described two amendment packages: one removed loan/lien language related to principal residence, and another amended the medical‑debt definition to specify a 60‑day past‑due timeframe before an amount qualifies as medical debt for collection purposes. Staff also described exemptions and clarifications tied to Medicaid and other recovery provisions.
Luke Thomas of Hallowell Consulting, testifying for the Employers Forum of Indiana, said SB 225 sensibly conditions hospitals’ ability to pursue medical‑debt collection on compliance with statutes that promote transparency, charity‑care reporting and advance notice for service‑line reductions. Brian Burdick, speaking for the Indiana Hospital Association (Barnes & Thornburg), said he supported the overall approach while urging further discussion on the appropriate notice timeline and the cash‑flow realities of rural hospitals.
Rachel Swartwood, chief of policy for Health and Family Services, called attention to state medical‑debt indicators and described the bill as a targeted step to protect patients and preserve access; she told the committee that roughly one in six Hoosiers faces medical debt in collection. Connor Wong of the Indiana Bankers Association said banks were neutral but wanted clarity on the definition of medical debt because some lending tools could be affected.
Committee members discussed operational questions, rural hospital cash‑flow concerns and whether carriers and employers can be better engaged in data collection. The bill was moved to the Senate floor as amended.
