Requires insurers to disclose AI use in claim denials; effective September 1, 2025.
If you use AI to deny insurance claims in Texas, disclose this to claimants by 2025 or face compliance issues.
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What This Means
The bill mandates that insurers and health maintenance organizations in Texas must disclose when AI is used to deny insurance claims. This includes notifying claimants that AI was involved, explaining the basis for the AI's decision, and providing instructions for appealing the denial. The law aims to increase transparency in AI-driven decision-making processes in the insurance sector. The effective date is September 1, 2025.
Key Provisions
- Insurers must disclose AI use in claim denials.
- Disclosure must include AI's decision basis.
- Provide appeal instructions with denial notice.
Latest Legislative Action
Left pending in committee
Compliance Checklist
Who: Insurers and health maintenance organizations
Deadline: 2025-09-01
Who: Insurers and health maintenance organizations
Deadline: 2025-09-01
Who: Insurers and health maintenance organizations
Deadline: 2025-09-01
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