Health care matters.

Indiana · 2026 session · senate

SB 173Health care matters.

Status: Signed into law
Latest action: 2026-01-15 — Committee report: amend do pass adopted; reassigned to Committee on Appropriations
Primary sponsor: Tyler Johnson (Republican)

AGENCIES; Department of Health (IDOH)
AGENCIES; Department of Insurance (IDOI)
BUSINESS ORGANIZATIONS AND ASSOCIATIONS; Charitable Organizations and Nonprofits
BUSINESS ORGANIZATIONS AND ASSOCIATIONS; Generally
CIVIL LAW AND PROCEDURE; Liabilities, Damages, and Penalties
HEALTH CARE FACILITIES; Hospitals
HEALTH CARE FACILITIES; Pharmacies
HEALTH CARE PROFESSIONALS; Doctors and Physicians
HEALTH CARE PROFESSIONALS; Pharmacists

Latest change summary

+862 / −866 words · LargeConfidence: high

This bill eliminates substantial portions of Indiana's physical therapy practice regulations and insurance claim management requirements. The changes remove mandatory referral requirements that previously required physical therapists to practice only upon orders from physicians, chiropractors, or other specified providers, effectively granting physical therapists direct access to patients. The bill also deletes multiple definitions central to physical therapy practice (including spinal manipulation, supervision types, and competence standards), removes credentialing requirements for specialized testing, and eliminates school-based service authorizations. Additionally, the bill strips away insurance-related provisions including prohibitions on health carriers using affiliated pharmacy benefit managers, restrictions on AI-based adverse determinations by utilization review entities (scheduled for 2026), and an entire chapter regulating the downcoding of medical claims by insurers. The combined effect significantly deregulates physical therapy practice while removing consumer protections in insurance claims processing.

Physical therapists no longer required to practice upon referral from physicians, chiropractors, or other specified healthcare providers (direct patient access granted)

Entire regulatory chapter on insurance claim downcoding removed, eliminating protections against insurers unilaterally reducing payment levels on submitted claims

Prohibition on AI-based adverse determinations by utilization review entities eliminated (scheduled 2026 restriction removed)

Health carriers permitted to contract with pharmacy benefit managers in which they hold ownership interests (conflict of interest restriction removed)

Multiple physical therapy supervision definitions deleted (direct, general, and onsite supervision), removing statutory framework for oversight of assistants and support personnel

AI-assisted summary grounded in bill text — verify against official sources before relying on it for counsel work.

SB 173Health care matters.

Latest change summary

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