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Bill > HF2635


IA HF2635

IA HF2635
A bill for an act relating to health carriers standards of conduct; utilization review organizations, artificial intelligence, audits, and prior authorizations; certificate of need processes; and including applicability provisions. (Formerly HF 2438.)


summary

Introduced
02/19/2026
In Committee
Crossed Over
03/03/2026
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

An Act relating to health carriers standards of conduct; utilization review organizations, artificial intelligence, audits, and prior authorizations; certificate of need processes; and including applicability provisions.

AI Summary

This bill aims to regulate health carriers, utilization review organizations (UROs), and certificate of need (CON) processes, with many provisions taking effect on January 1, 2027. It restricts UROs from solely using artificial intelligence (AI) to deny, delay, or downgrade prior authorization requests for health care services based on medical necessity, requiring human review for such decisions. The bill also establishes new rules for URO audits, mandating notification of audits within 15 days, determination within 45 days of receiving requested documentation, and a 30-day timeframe for appeals, with penalties for violations. It sets standards for health carrier conduct, prohibiting them from penalizing providers for out-of-network referrals or interfering with provider decisions on staffing and referrals, and requiring negotiation opportunities before enforcing agreements. For prior authorizations, the bill mandates that denials or downgrades must be made by a qualified reviewer or clinical peer, with detailed written explanations and appeal processes provided to providers and patients, and allows for consultations between providers and reviewers. It also exempts certain cancer screenings and emergency medical conditions from prior authorization requirements. The CON process is modified by increasing the cost thresholds for projects requiring a CON, adjusting fee structures, and streamlining review procedures, while also expanding the types of facilities and services subject to CON review, including specific behavioral health services, open heart surgery, organ transplantation, radiation therapy, and cardiac catheterization.

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Health And Human Services (House)

Last Action

Message from House. (on 03/05/2026)

bill text


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