Big Business Hijacked HB 1271 — Tell Your Legislator to Fix It!
- Erin Tahvonen, LMHC
- Feb 13
- 3 min read
Updated: Feb 14
Not all healthcare operates on a level playing field. Large hospital systems and insurance companies have the scale and leverage to negotiate favorable terms, while small, independent medical practices often do not. Instead, they are asked to accept take-it-or-leave-it contracts, frequently with provisions that allow payments to be revisited or recouped long after care has been delivered.
Indiana has an opportunity to address this imbalance.
House Bill 1271, introduced by Representative Julie McGuire in the 2026 legislative session, proposed a set of practical, measured reforms to bring greater transparency and predictability to healthcare.
The original bill
Ensured patients are informed of financial assistance before being sent to collections
Prohibited unilateral downcoding of services by insurers
Required advance notice of reimbursement rate reductions
Limited recoupment and audit of paid claims to 180 days
These provisions are not abstract policy changes. For independent providers — including primary care, specialty care, and outpatient mental health — they represent the difference between stability and ongoing financial uncertainty.
At a time when Indiana faces significant provider shortages, particularly in mental health, reducing administrative and financial volatility is essential. All 92 counties in the state are designated as mental health workforce shortage areas. Policies that increase unpredictability risk accelerating provider attrition and limiting access to care.
Despite broad support for the bill’s intent, a late-night, late-stage amendment fundamentally altered its impact.
The amendment:
Extends recoupment periods from 180 days to one year
Expands audit timelines to as long as three years
Allows insurers to contract around statutory protections
These changes were introduced after significant legislative progress had already been made. While presented as technical adjustments, they materially shift the balance of the bill.
By extending audit and recoupment periods, the amendment preserves the ability to revisit claims long after services are rendered, prolonging financial uncertainty for providers. More concerning, allowing insurers to contract around statutory protections effectively renders those protections optional for insurers— particularly for independent providers who lack the leverage to negotiate contract terms.
The result is a bill that, in its amended form, risks reinforcing the very dynamics it was intended to correct.
Process matters. When substantive changes are introduced late in the legislative process, there is limited opportunity for stakeholders to fully evaluate their impact. In this case, the amendment significantly weakens a bill that had the potential to create more balanced and sustainable conditions for care delivery.
If the goal is to support access to care, particularly in underserved areas, then policy must reflect the realities faced by the providers delivering that care.
Meaningful reform requires clear, enforceable standards — not provisions that can be contracted away.
As HB 1271 moves forward, there is still an opportunity to restore its original intent. Doing so would provide reasonable guardrails for both providers and patients and help ensure that independent medical practices — a critical component of Indiana’s healthcare system — can continue to serve their communities.
Hope is not lost, but now more than ever the Senate needs to hear from you!
TWO ACTION STEPS:
Step 1: Sign the Petition
step 2: Email legislators
Subject Line Ideas:
Fix HB 1271: Protect (Mental Health / Primary Care / Pediatrics / etc.)
Don’t Let Small Clinics Disappear — Support HB 1271
Protect Access to Care in Indiana — Fix HB 1271
Urgent: HB 1271 Amendment Threatens Access to Care Support HB 1271 as Originally Written
Protect Small Medical Practices — Fix HB 1271
Safeguard Access to Care — Fix HB 1271"
District [X] Voter: Please Fix HB 1271
Stand Up for Small Medical Practices — Fix HB 1271
Protect Mental Health Access — Fix HB 1271
Sample Message Text:
Dear Senator [Last Name],
I am a [constituent / provider / patient] in District [X], and I am asking you to restore meaningful protections in House Bill 1271.
Independent providers are struggling under insurance practices that allow payments to be taken back long after care is delivered, with little ability to challenge it. Small practices cannot absorb that kind of uncertainty — and when they close, patients lose access to care.
Please support changes that:
Set both recoupments and audits at a 6-month limit
Do not allow insurers to contract around statutory protections
These are simple, fair guardrails that would bring stability to providers and protect patient access.
Thank you for your time and consideration.
Sincerely,
[Your Name]
[City or ZIP Code]
Recipients
The most important people who need to hear from you are:
The Senate Sponsors:
Senator Liz Brown - s15@iga.in.gov
Senator Tyler Johnson - s14@iga.in.gov
Senator Michael Crider - s28@iga.in.gov
The Author and Co-Authors:
Represenative Julie McGuire - h93@iga.in.gov
Representative Lori Goss-Reaves - h31@iga.in.gov
Representative Martin Carbaugh -h81@iga.in.gov
Representative Victoria Garcia Wilburn - h32@iga.in.gov
Your Senator: