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AI Summary
The AI Use in Health Insurance Act regulates insurers' use of AI systems for adverse determinations and mandates review processes by authorized individuals.
Business Impact
If you operate an insurance company in Illinois using AI, you must ensure decisions are reviewed by a qualified individual or face regulatory scrutiny.
What do these statuses mean? ▼
Introduced
— Filed in the legislature; not yet heard in committee
In Committee
— Assigned to and being reviewed by a legislative committee
Passed
— Approved by one or both chambers; awaiting further action
Signed / Enacted
— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed
— Vetoed, failed to pass, or session expired without action
Unknown
— Status data not yet available or awaiting classification
Affected Industries
Topics How we classify →
What This Means
The AI Use in Health Insurance Act establishes oversight for insurers using AI systems for adverse determinations, requiring review by authorized individuals to ensure accountability.
Key Provisions
- The Department of Insurance oversees insurers' use of AI systems for adverse determinations.
- Insurers cannot issue adverse outcomes solely based on AI systems.
- Decisions made by AI must be reviewed by an individual with authority to override them.
- The Department can adopt emergency rules for implementation.
- Standards for disclosure of AI usage by insurers will be established.
- Conforming changes will be made to the Illinois Administrative Procedure Act.
Latest Legislative Action
Filed with the Clerk by Rep. Bob Morgan
Bill Sponsors
| Name | Role | District |
|---|---|---|
| Bob Morgan D | Sponsor | HD-058 |
Compliance Checklist
Ensure AI-driven decisions are reviewed by an authorized individual.
Who: Insurers operating in Illinois.
Penalty: Regulatory scrutiny or potential penalties.
Who: Insurers operating in Illinois.
Penalty: Regulatory scrutiny or potential penalties.
Adopt and implement disclosure standards for AI usage.
Who: Insurers authorized to operate in Illinois.
Penalty: Regulatory action for non-compliance.
Who: Insurers authorized to operate in Illinois.
Penalty: Regulatory action for non-compliance.
Related & Companion Bills
Full Legal Analysis
The AI Use in Health Insurance Act mandates that insurers in Illinois are subject to oversight by the Department of Insurance regarding AI system use. Insurers cannot issue adverse outcomes solely based on AI decisions; these must be reviewed by an individual with authority to override the AI's determinations. The Department can adopt emergency rules to implement the Act and establish standards for AI usage transparency. This legislation aims to enhance accountability and protect consumers from biases or errors in AI-driven decision-making. Compliance is critical for insurers, as non-adherence could lead to regulatory actions. The bill reflects a trend to regulate AI in sensitive sectors like health insurance, addressing concerns about algorithmic accountability and consumer protection.
Official Source
Official Bill Text
View HB5918 on official legislature website →
Related Topics
Affected Industries
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