In one paragraph
Alabama's HB 515 (2025, as introduced) would have limited how health insurers use AI, algorithms or other software in utilization review. Medical necessity determinations would always have been made by a licensed physician or other competent health care professional. Insurers would have had to disclose AI use to enrollees and contracting providers, periodically review outcomes, and face civil suits for compensatory or punitive damages. Introduced April 3, 2025 and referred to the House Committee on Insurance; it died in committee when the 2025 session ended.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill died and did not become law. It would have required health insurers to keep a licensed professional in medical-necessity decisions, disclose AI use and face civil suits.
Key provisions
- Would have applied to insurers that use AI, an algorithm or other software, or contract with others to do so, for utilization management or review based on medical necessity
- Coverage determinations would have had to use the patient's relevant clinical history and unique circumstances, not rely solely on a group dataset, not ignore provider decision-making, and not discriminate in violation of state or federal law
- Medical necessity would always have been determined by a licensed physician or other health care professional competent to evaluate any AI recommendation
- Insurers would have had to give prominent written disclosure of AI use to enrollees and contracting providers, periodically review AI use and outcomes (including denial and modification rates), and keep patient data within its intended purpose consistent with HIPAA
- An injured person could have sued for compensatory or punitive damages, injunctive relief, and costs and attorney fees; the Department of Insurance could have adopted enforcement rules
- Would have taken effect October 1, 2025
- Status: introduced April 3, 2025 and referred to the House Committee on Insurance; died in committee, never passed by either house
Latest legislative action
Apr 3, 2025. Read for the first time and referred to the House Committee on Insurance
Sponsors (showing 5 of 7)
| Name | Role |
|---|---|
| Bolton | Primary |
| Ford | Primary |
| Garrett | Primary |
| Kelvin Lawrence D | Primary |
| McMillan | Primary |
Topics and industries
Related topics
Affected industries
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