TX SB1822: Relating to the use of artificial intelligence-based algorithms in utilization review conducted for certain health benefit plans. Verified

Senate Bill 1822 introduces specific requirements for health insurance issuers and their utilization review agents regarding the use of artificial intelligence-based algorithms. It mandates that these entities publish disclosures about their AI usage on their websites and provide written notice to insured individuals and healthcare providers. Furthermore, the bill requires annual submission of an artificial intelligence compliance statement to the Texas Department of Insurance, detailing the algorithms' functions, decision-making processes, training data sources, and compliance with bias minimization and clinical guidelines. The compliance deadline for submitting the annual statement is set for December 31 of each year. This statement must include a summary of the AI algorithm's function, a logic or decision tree, descriptions of training data sets, and attestations of compliance with the outlined bias and clinical guideline requirements. In cases of suspected non-compliance, the commissioner has the authority to request additional documentation or conduct inspections of the AI algorithms and training data sets used. The bill emphasizes the confidentiality of the information submitted, protecting it from public disclosure under the Government Code. This legislative measure is designed to ensure that AI technologies used in healthcare are transparent, accountable, and equitable, addressing potential biases in automated decision-making processes. The effective date for this legislation is September 1, 2025, providing issuers time to prepare for compliance.