In one paragraph
Texas HB 4635 (Rep. Garcia Hernandez) would have required an insurer or health maintenance organization that denies a claim based on a determination made by artificial intelligence to give the claimant, with the denial notice, a written disclosure that AI made the determination, its basis, and instructions on appealing. It would apply to claims submitted on or after September 1, 2025. Left pending in House Insurance Committee May 7, 2025; it died when the session ended.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill did not pass. Had it passed, insurers and HMOs denying claims on AI determinations would have had to add an AI disclosure and appeal instructions to denial notices.
Key provisions
- Would add Insurance Code Chapter 526 (Use of Artificial Intelligence)
- Sec. 526.002: an insurer or HMO that denies a claim based on a determination made by AI would have to give the claimant a written disclosure with the denial notice
- The disclosure would have to state that AI made the determination, the basis for that determination, and instructions for appealing the denial with the insurer or HMO
- Would apply only to claims submitted on or after the effective date; the introduced text sets no penalty
- Would have taken effect September 1, 2025; status: heard in House Insurance Committee May 7, 2025 (a committee substitute was considered) and left pending
Latest legislative action
May 7, 2025. Left pending in committee
Sponsors
| Name | Role | District |
|---|---|---|
| Cassandra Garcia Hernandez D | Sponsor | HD-115 |
| Hubert Vo D | Sponsor | HD-149 |
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