Indiana's new AI insurance law just took effect — insurers can't downcode your claims by AI alone
As of July 1, 2026, health insurers in Indiana can no longer use AI as the only basis to downcode a claim (pay it at a lower level than billed) — a human must review the patient's medical record first. Insurers also now have to disclose, in plain view, whenever AI was used to deny a prior authorization or downcode a claim. Two things for your team: your billing office should start watching downcoded claims for the required disclosures, and note the law cuts both ways — providers also can't submit claims generated by AI without a person involved in the claim reviewing them. Appeals get at least 180 days.
Primary source: HB 1271 — iga.in.gov