Indiana legislation · 2026 Regular Session
Indiana HB1201: Various mental health and insurance matters.
Status: In committee, January 22, 2026
Prohibits the use of an artificial intelligence system to impersonate or act as a substitute for a licensed mental health professional. Requires the department of insurance to contract with an objective third party to verify that health carriers are in compliance with network adequacy standards. Sets forth notice requirements for an amendment to a health provider contract. Prohibits the use of downcoding in a specified manner. Requires an insurer and a health maintenance organization to reimburse providers of mental illness or substance abuse services at rates that are at least as favorable relative to Medicare rates as reimbursement rates are for providers of medical or surgical services relative to Medicare rates. Prohibits an insurer and a health maintenance organization from retroactively auditing a paid claim or seeking recoupment or a refund of a paid claim after a certain time frame. Sets forth a limitation on the amount that an insured or enrollee may be charged for receiving mental and behavioral care services from an out of network provider under certain circumstances.
What the bill says
A bill FOR AN ACT to amend the Indiana Code concerning insurance.
From the introduced text:
A BILL FOR AN ACT to amend the Indiana Code concerning insurance. SECTION 1. IC 25-1-23.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2026]: Chapter 23.5. Use of Artificial Intelligence Systems Sec. 1. As used in this chapter, "artificial intelligence system" means a machine based system that, for explicit or implicit objectives, infers from the input it receives how to generate outputs, (2) content; (3) recommendations; or (4) decisions; that can influence physical or virtual environments. The term includes generative artificial intelligence. Sec. 2. As used in this chapter, "board" means any of the following: (1) The behavioral health and human services licensing board. 2026 IN 1201--LS 6817/DI (2) The state psychology board. Sec. 3. As used in this chapter, "generative artificial intelligence" means an automated computing system that, when prompted with human prompts, descriptions, or queries, can produce outputs that simulate human product content, including: (1) textual outputs, such as short answers, essays, poetry, or longer compositions or answers; (2) image outputs, such as fine art, photographs, conceptual art, diagrams, and other images; (3) multimedia outputs, such as audio or video in the form of compositions, songs, or short-form or long-form audio or video; and (4) other content that would otherwise be produced by human means. Sec. 4. As …
Sponsors
- Elizabeth Rowray (R, HD-035) · primary sponsor
- Becky Cash (R, HD-025)
- Cindy Ledbetter (R, HD-075)
- Lori Goss-Reaves (R, HD-031)
Latest actions
- : Representative Goss-Reaves added as coauthor
- : Representative Ledbetter added as coauthor
- : Representative Cash added as coauthor
- : Authored by Representative Rowray
- : First reading: referred to Committee on Insurance
Subjects: AGENCIES; Department of Insurance (IDOI), HEALTH CARE FACILITIES; Mental Health Facilities, INSURANCE; Health Maintenance Organizations (HMOs), HEALTH; Behavioral Health; Mental Illness and Treatment, TECHNOLOGY; Artificial Intelligence and Robotics, INSURANCE; Medicare, ADDICTION SERVICES; Generally, HEALTH CARE PROFESSIONALS; Licensing (Including Behavioral and Mental Health)
Common questions
- What is HB1201?
- HB1201 is a bill in the Indiana Legislature (2026 Regular Session): Various mental health and insurance matters.
- What does HB1201 do?
- In its own words: A bill FOR AN ACT to amend the Indiana Code concerning insurance.
- What is the status of HB1201?
- In committee as of January 22, 2026. Latest action: Representative Goss-Reaves added as coauthor (January 22, 2026).
- Who sponsored HB1201?
- Elizabeth Rowray (R, HD-035), with 3 co-sponsors.
- Where is the official record for HB1201?
- On the Indiana Legislature website: https://iga.in.gov/legislative/2026/bills/house/1201
Source: official Indiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.