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Relating to the use of artificial intelligence-based algorithms by health benefit plan issuers, utilization review agents, health care providers, and physicians.
In one paragraph
Texas SB 1411 (2025), as introduced, would have regulated AI-based algorithms in health coverage and care. Health benefit plan issuers and physicians could not discriminate on race, color, national origin, gender, age, vaccination status or disability using clinical AI algorithms. Issuers would have had to disclose AI use in utilization review, submit algorithms and training data to the insurance department, and have a specialist review before an adverse determination. Physicians and providers could have faced license sanctions and fines up to $5,000 per violation. It died June 2, 2025.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
No duties for businesses because the bill died. Had it passed, health insurers would have faced disclosure, filing and specialist-review duties and providers would have faced licensing and fine exposure.
Key provisions
- Ins. Code Sec. 544.702: issuers 'may not discriminate on the basis of race, color, national origin, gender, age, vaccination status, or disability' when using clinical AI algorithms
- Sec. 544.703: issuers must publish on their website and give each enrollee written disclosure of whether they use AI in utilization review
- Sec. 544.704: issuers must submit AI algorithms and training data sets to the department, which would develop a certification process
- Sec. 544.705: a utilization review agent using AI must require a specialist to open and document the review before an adverse determination
- Occ. Code Ch. 117: no discrimination by physicians/providers via clinical AI; HHS inspector general investigates; fines up to $5,000 per violation, $10,000 per intentional violation, $50,000 aggregate per year (Sec. 117.005)
- Section 4: plan rules apply to plans delivered, issued or renewed on or after January 1, 2026; Chapter 117 applies to services on or after January 1, 2026
- Section 5: would have taken effect September 1, 2025; it died after referral to the Senate Business & Commerce Committee
Latest legislative action
Mar 6, 2025. Referred to Business & Commerce; died when the 89th Legislature's regular session adjourned June 2, 2025
Sponsors
| Name | Role |
|---|---|
| Campbell | Primary |
| Menéndez | Primary |
| Miles | Primary |
| Zaffirini | 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