In one paragraph
Tennessee's HB1866 (114th General Assembly), the "Regulate Artificial Intelligence (AI) in Health Care Act," would have barred, on or after July 1, 2026, a health insurance issuer that uses AI, an algorithm or other software tool for utilization review or management based in whole or in part on medical necessity from denying, delaying or modifying care on medical necessity grounds unless a licensed healthcare professional or provider reviews the prior authorization request. Companion: SB 2010. Not passed before the session ended in April 2026; last action: Taken off notice for cal in s/c Insurance Subcommittee of Insurance Committee (March 11, 2026).
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
Not law. If enacted, health insurers, PBMs, TPAs and state health plans using AI or algorithmic utilization review would have needed a licensed professional or provider to review prior authorization requests before denying, delaying or modifying care.
Key provisions
- Covers a health insurance issuer that uses an AI, algorithm or other software tool for utilization review or management based in whole or in part on medical necessity, or works through an entity that does
- On or after July 1, 2026, the issuer could not deny, delay or modify healthcare services based on medical necessity unless the prior authorization request is reviewed by a licensed healthcare professional or healthcare provider
- A medical necessity determination would have to be made only by a licensed physician or licensed healthcare professional competent to evaluate the clinical issues, considering the requesting provider's recommendation, the enrollee's clinical history and individual clinical circumstances
- "Health insurance issuer" includes insurers, HMOs, nonprofit hospital and medical service corporations, pharmacy benefits managers, third-party administrators, TennCare, CoverKids, Access Tennessee and the state group insurance plans
- A violation would be an unfair claims practice under the Tennessee Unfair Trade Practices and Unfair Claims Settlement Act of 2009, which lets the commissioner of commerce and insurance sue in Davidson County chancery court to enjoin violations
- Status: last action Taken off notice for cal in s/c Insurance Subcommittee of Insurance Committee on March 11, 2026; companion SB 2010; not passed before the 114th General Assembly ended in April 2026
Latest legislative action
Mar 11, 2026. Taken off notice for cal in s/c Insurance Subcommittee of Insurance Committee
Sponsors (showing 5 of 8)
| Name | Role |
|---|---|
| Barrett | Primary |
| Casada | Primary |
| Crawford | Primary |
| Crowe | Primary |
| Hall | 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