NY S10241: Relates to the use of artificial intelligence by insurers and clinical peer reviewers for utilization review; establishes additional notice requireme…
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Relates to the use of artificial intelligence by insurers and clinical peer reviewers for utilization review; establishes additional notice requirements for adverse determinations.
AI Summary
This bill mandates insurers to disclose the use of AI in utilization reviews and sets notice requirements for adverse determinations.
If you are an insurer using AI for utilization reviews, you must notify insureds and health care providers about AI usage by policy renewal or face penalties.
State
New York
Bill Number
S10241
Status
Introduced
Risk Level
High
Category
Comprehensive
Last Action
May 8, 2026
Last Verified
May 22, 2026
Data Updated
May 22, 2026
Version
v2
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
The bill introduces significant regulations on the use of artificial intelligence in the insurance sector, particularly for utilization reviews. This legislation aims to enhance transparency and accountability in automated decision-making processes affecting health care services.
Key Provisions
Insurers must notify insureds and providers about AI usage in utilization reviews.
Latest Legislative Action
REFERRED TO INSURANCE
Bill Sponsors
Name
Role
District
Michelle HincheyD
Sponsor
SD-041
Compliance Checklist
Provide written notice about AI usage in utilization reviews Who: Insurers Deadline: At policy renewal and annually Penalty: Fines up to $10,000 for willful violations
Submit AI algorithms and training data to the superintendent Who: Insurers Deadline: As specified by the superintendent Penalty: License suspension or revocation
The bill requires insurers to provide written notice to insureds, enrollees, and health care providers regarding the use of artificial intelligence-based algorithms in their utilization review processes. This notice must be given when the algorithm is first adopted and once during each policy period. Compliance is mandatory for all insurers authorized to write accident and health insurance in New York. The bill emphasizes the importance of transparency and accountability in the use of AI in health care, aligning with broader trends in technology regulation across various states.
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