In one paragraph
Illinois's HB 35 (engrossed, with House Floor Amendment 1) would create the Artificial Intelligence Systems Use in Health Insurance Act. A health insurance issuer could not issue an adverse consumer outcome denying, reducing or terminating coverage or benefits that results solely from an AI system or predictive model, and denials, reductions or terminations resulting from AI would need meaningful review by a person able to override the AI. The Department of Insurance could review issuers' AI use. Passed the House 79-35 on April 9, 2025; re-referred to Senate Assignments June 2, 2025.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill has not been enacted. If enacted, health insurers, HMOs and similar issuers could not deny or cut coverage solely on AI output and would need human review.
Key provisions
- A health insurance issuer authorized in Illinois would not issue an adverse consumer outcome denying, reducing or terminating health coverage or benefits that results solely from the use of an AI system or predictive model
- Decision-making on denials, reductions or terminations that results from AI systems or predictive models would be meaningfully reviewed, under Department rules, by an individual with authority to override the AI systems
- For adverse determinations regulated by the Managed Care Reform and Patient Rights Act, that reviewer would be a clinical peer as defined in that Act
- In an investigation or market conduct action, the Department of Insurance could review issuers' development, implementation and use of AI systems and predictive models and request documentation on AI governance, risk management, third-party diligence and AI systems program compliance; issuers would have to comply
- The Department could adopt rules on full and fair disclosure of issuers' AI use, including notice before use, notice after an adverse decision, how personal information is used, correcting inaccurate information and appeals
- Issuers would have to comply with the Act and other insurance laws, and their AI systems programs would have to ensure conformity; health service plan corporations under the Voluntary Health Services Plans Act would also be subject to it
- Status: passed the House 79-35-0 on April 9, 2025; in the Senate, Senate Committee Amendment No. 1 was filed May 12, 2025 and on June 2, 2025 the bill was re-referred to Assignments; not enacted
Latest legislative action
Jun 2, 2025. Rule 3-9(a) / Re-referred to Assignments
Sponsors (showing 5 of 65)
| Name | Role |
|---|---|
| Bob Morgan D | Primary |
| Iris Y. Martinez | Primary |
| Jack D. Franks | Primary |
| Joyce Mason D | Primary |
| La Shawn K. Ford D | Primary |
Roll call votes
Third Reading Apr 9, 2025
79 yea35 nay4 otherPassed
Insurance, Amendment 1 Apr 8, 2025
10 yea4 nay3 otherPassed
Insurance Mar 11, 2025
11 yea6 nayPassed
Topics and industries
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