The deal, proposed in a class-action suit over a 2015 data breach affecting nearly 80 million people, would be the largest-ever in such a case if approved.
The $18.5 million settlement involves 47 states and the District of Columbia.
Hackers are gaining access to Hoosier health records and information by targeting health care providers across the state.
The lawsuits accuse Medical Informatics Engineering of negligence.
Medical Informatics Engineering says the breach of its NoMoreClipboard service exposed personal data including birth dates, addresses and phone numbers.
A recent electronic records breach may have affected 1.5 million Hoosiers and nearly 4 million people nationwide.
Indiana Attorney General Greg Zoeller says the bill will provide additional protection against data breaches and identity theft.
A Jimmy John's data breach left customers' credit and debit card information unsecured for months.
Goodwill's investigation into the data breach from earlier this year revealed 11 stores in southern Indiana were affected.
An Indiana University spokesman says the response to data breach cost the university $130,000.