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

In one paragraph

Texas SB 1822 (2025), as engrossed, would have added Insurance Code Sec. 4201.156 requiring health benefit plan issuers and their utilization review agents to disclose whether they use AI-based algorithms in utilization review, ensure the algorithm and its training data minimize bias and follow evidence-based clinical guidelines, and file an annual compliance statement by December 31. It passed the Senate, but no enrolled version exists, so 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 and their utilization review agents would have faced disclosure and annual filing duties.

Key provisions

1. 1Sec. 4201.156(a): issuers 'shall publish on a publicly accessible part of the issuer's Internet website' and give written disclosure of whether AI-based algorithms are used in utilization review
2. 2Sec. 4201.156(b): the algorithm and training data sets must have minimized the risk of bias based on race, color, religion and other listed traits and comply with evidence-based clinical guidelines
3. 3Sec. 4201.156(c): not later than December 31 each year, submit a compliance statement describing the algorithm's function, decision logic, training data and oversight process
4. 4Sec. 4201.156(d): if the commissioner believes an entity is noncompliant, the commissioner may require more documentation or inspect the algorithm and training data
5. 5Sec. 4201.156(e): submitted information is confidential and exempt from Chapter 552, Government Code
6. 6Section 2: would have taken effect September 1, 2025; no enrolled version exists

Latest legislative action

May 7, 2025. Left pending in committee

Sponsors

Roll call votes