Bill > SB1822

This bill requires health insurance issuers and health maintenance organizations to be transparent about their use of artificial intelligence (AI) in utilization review, which is the process of evaluating the medical necessity and appropriateness of healthcare services. Specifically, these organizations must publicly disclose on their websites and in writing whether they use AI-based algorithms in their utilization review processes. The bill mandates that these AI algorithms must minimize bias related to personal characteristics like race, age, gender, and disability, and must comply with evidence-based clinical guidelines. Each year, by December 31, these organizations must submit a detailed compliance statement to the state department, which includes information about the AI algorithm's function, decision-making process, training data sources, and a statement attesting to the algorithm's compliance with anti-bias and clinical guideline requirements. The commissioner of insurance is granted the authority to request additional documentation or conduct inspections if there are concerns about compliance, and all submitted information is considered confidential. The bill will take effect on September 1, 2025, giving organizations time to prepare for these new transparency and fairness requirements.

Business and Industry, Health and Social Services

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1822