Skip to content

Session Expired

Your session has expired. Please sign in again to continue where you left off.

Sign In Again

IN HB1201: Various mental health and insurance matters.

Dead/Failed Indiana · 2026 session

Last verified May 22, 2026 · official bill text

HB1201 · where it stands

This bill did not become law (dead/failed) · last action Jan 22, 2026.

What do these statuses mean?
Introduced
Filed in the legislature; may be waiting for a committee hearing.
Passed a chamber
Approved by one or both chambers; awaiting further action.
Signed / enacted
Signed into law; it may or may not be in effect yet.
In effect
The effective date has passed.
Dead / vetoed
Vetoed, failed, or the session ended without action.

In one paragraph

The bill prohibits AI from impersonating mental health professionals and sets standards for insurance reimbursement for mental health services.

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

If you use AI in mental health services in Indiana, you must ensure it does not impersonate licensed professionals or face penalties.

What this means

This bill addresses the intersection of artificial intelligence and mental health services by prohibiting AI systems from acting as licensed professionals. It also establishes reimbursement standards for mental health services, ensuring that providers are compensated fairly compared to medical services. Insurance companies and health maintenance organizations will need to comply with these new regulations to avoid penalties.

Key provisions

  1. Prohibits AI from impersonating licensed mental health professionals.
  2. Requires compliance verification for health carriers regarding network adequacy.
  3. Mandates favorable reimbursement rates for mental health services compared to medical services.
  4. Prohibits downcoding practices affecting reimbursement.
  5. Limits retroactive audits of paid claims by insurers.
  6. Sets charge limitations for out-of-network mental health services.

Compliance checklist

  • Ensure AI systems do not impersonate licensed professionals Who: Mental health service providers using AI Penalty: Potential penalties for non-compliance
  • Verify reimbursement rates align with Medicare standards Who: Insurers and health maintenance organizations Penalty: Financial penalties for non-compliance

Latest legislative action

Jan 22, 2026. Representative Goss-Reaves added as coauthor; died when the Indiana General Assembly's 2026 session ended February 27, 2026

Full analysis

The bill introduces several key provisions regarding the use of artificial intelligence in mental health services. It explicitly prohibits any AI system from impersonating or acting as a substitute for a licensed mental health professional, thereby safeguarding the integrity of mental health care. Additionally, the bill mandates that health carriers must adhere to network adequacy standards, verified by an objective third party contracted by the department of insurance. This ensures that patients have access to necessary mental health services without undue barriers. Moreover, the bill requires insurers and health maintenance organizations to reimburse providers of mental illness or substance abuse services at rates that are at least as favorable as those for medical or surgical services relative to Medicare rates. This provision aims to enhance the financial viability of mental health services and ensure equitable treatment compared to other medical services. The bill also prohibits downcoding practices that could adversely affect reimbursement rates and limits the timeframe in which insurers can retroactively audit paid claims. This is designed to protect providers from unexpected financial liabilities and ensure timely payments for services rendered. Lastly, the bill sets limitations on charges for out-of-network mental and behavioral care services, further promoting access to care. Overall, this legislation reflects a growing recognition of the importance of mental health services and the need for regulatory frameworks that address the unique challenges posed by the integration of technology in healthcare.

Sponsors

NameRoleDistrict
R Sponsor HD-025
R Sponsor HD-075
R Sponsor HD-035
R Sponsor HD-031

Topics and industries

Related topics

AI HealthcareAI in InsuranceComprehensive AI

Affected industries

InsuranceHealthcareFinance

This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error

More Indiana AI legislation

All Indiana bills →
HB1360 Access to public records. SB0163 Various property tax matters. HB1421 Ban on employer use of automated decision systems. HB1047 Sexual offenses. SB0005 Consumer data protection. HB1620 Disclosure of artificial intelligence use in health care.