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Healthcare AI Laws by State

105 bills across 33 states regulating AI in healthcare — utilization review limits, prior authorization rules, clinical decision-making guardrails, and provider disclosure requirements.

33 states, 105 bills
12
Clinical Decision Making
13
Mental Health Chatbots
12
Provider Disclosure
68
Utilization Review & Prior Auth

Key Enacted Healthcare AI Laws

Editorially curated and verified against primary sources. Updated automatically as new bills are tracked.

State Bill Status Effective What It Does Source
Utilization Review & Prior Auth
Alabama SB 63 Enacted (2026) 2026-10-01 Health care professional must make final decision when coverage is denied; prohibits sole reliance on AI; requires human oversight and disclosure of AI use. Primary Source
Arizona HB 2175 Enacted (2025) 2026-07-01 State-licensed medical director must personally review any denial involving medical necessity; prohibits sole reliance on algorithms or automated systems for coverage denials. Primary Source
California SB 1120 Enacted (2024) 2025-01-01 Health plans/disability insurers using AI for utilization review must base decisions on individual clinical history; final medical-necessity decision must be made by a licensed physician. Primary Source
Clinical Decision Making
Indiana HB 1271 Enacted (2026) 2026-07-01 Insurers prohibited from using automated processes/AI as sole basis for downcoding claims based on medical necessity without human review of medical record; must disclose AI use in adverse determinations. Primary Source
Utilization Review & Prior Auth
Maryland HB 820 Enacted (Ch. 747, 2025) 2025-10-01 Carriers, PBMs, and private review agents using AI for utilization review must ensure decisions based on individual clinical history; final decision by physician; quarterly adverse-decision reporting must indicate AI use. Primary Source
Nebraska LB 77 Enacted (2025) 2026-01-01 AI output cannot be sole basis for evaluating medical necessity to deny/delay/modify health care services; AI use in utilization review must be disclosed to providers and enrollees. Primary Source
Texas SB 815 Enacted (89R, 2025) 2025-09-01 Utilization review agent may not use AI as sole basis for adverse determination; only physician/licensed provider may determine medical necessity; TDI may audit AI use. Primary Source
Washington SB 5395 Enacted (2026) 2026-06-11 Prohibits AI as sole means to deny/delay/modify health care services; requires licensed provider review for medical necessity denials. Primary Source

All Healthcare AI Bills

State Bill Status Effective Category Summary
Alabama SB 63 Enacted (2026) 2026-10-01 Utilization Review & Prior Auth Health care professional must make final decision when coverage is denied; prohibits sole reliance on AI; requires human oversight and disclosure of AI use.
Arizona HB 2175 Enacted (2025) 2026-07-01 Utilization Review & Prior Auth State-licensed medical director must personally review any denial involving medical necessity; prohibits sole reliance on algorithms or automated systems for coverage denials.
Arkansas HB1297 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
California SB 1120 Enacted (2024) 2025-01-01 Utilization Review & Prior Auth Health plans/disability insurers using AI for utilization review must base decisions on individual clinical history; final medical-necessity decision must be made by a licensed physician.
California SB579 Dead 2024-01-01 Mental Health Chatbots Regulates AI chatbots for mental health services
California SB 1146 In Committee Provider Disclosure Requires disclosure of AI use by healthcare providers
California AB 2575 Unknown Clinical Decision Making Governs AI-assisted clinical decisions or coding
California AB512 Vetoed Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
California SB 903 Unknown Mental Health Chatbots Regulates AI chatbots for mental health services
California AB 1979 Unknown Clinical Decision Making Governs AI-assisted clinical decisions or coding
California AB2431 Introduced Clinical Decision Making Governs AI-assisted clinical decisions or coding
Colorado HB 1195 Passed One Chamber Clinical Decision Making Governs AI-assisted clinical decisions or coding
Colorado HB 1139 Passed One Chamber Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Florida S0794 Dead Utilization Review & Prior Auth Regulates AI in healthcare
Florida H1555 Unknown Utilization Review & Prior Auth Regulates AI in healthcare
Florida S0202 Dead Utilization Review & Prior Auth Regulates AI in healthcare
Florida H0527 Dead Utilization Review & Prior Auth Regulates AI in healthcare
Georgia SB 444 In Committee Utilization Review & Prior Auth Regulates AI in healthcare
Georgia SB444 In Committee Utilization Review & Prior Auth Regulates AI in healthcare
Georgia HB887 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
Hawaii HB2537 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Hawaii SB2768 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Hawaii SB2953 Introduced Provider Disclosure Requires disclosure of AI use by healthcare providers
Hawaii SB2167 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Hawaii HB1787 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Hawaii SB3027 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Illinois HB4735 Introduced 2023-10-01 Clinical Decision Making Governs AI-assisted clinical decisions or coding
Illinois SB3702 Introduced Clinical Decision Making Governs AI-assisted clinical decisions or coding
Illinois HB4804 Introduced Clinical Decision Making Governs AI-assisted clinical decisions or coding
Illinois SB1425 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Illinois HB2472 Passed Both Chambers 2025-01-01 Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Illinois SB 1425 Unknown Utilization Review & Prior Auth Regulates AI in healthcare
Illinois SB 3702 In Committee Clinical Decision Making Governs AI-assisted clinical decisions or coding
Illinois SB3114 Introduced 2023-10-01 Clinical Decision Making Governs AI-assisted clinical decisions or coding
Illinois HB5918 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Illinois HB0035 In Committee Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Illinois HB 4804 In Committee Clinical Decision Making Governs AI-assisted clinical decisions or coding
Indiana HB 1271 Enacted (2026) 2026-07-01 Clinical Decision Making Insurers prohibited from using automated processes/AI as sole basis for downcoding claims based on medical necessity without human review of medical record; must disclose AI use in adverse determinations.
Iowa SF562 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Kansas SB467 Introduced Provider Disclosure Requires disclosure of AI use by healthcare providers
Kentucky HB734 Introduced 2025-01-01 Utilization Review & Prior Auth Regulates AI in healthcare
Kentucky HB455 In Committee Mental Health Chatbots Regulates AI chatbots for mental health services
Kentucky HB641 Introduced Mental Health Chatbots Regulates AI chatbots for mental health services
Kentucky SB34 Introduced 2025-01-01 Utilization Review & Prior Auth Regulates AI in healthcare
Louisiana SB246 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
Louisiana SB5 Introduced Mental Health Chatbots Regulates AI chatbots for mental health services
Maine LD1301 Dead Utilization Review & Prior Auth Regulates AI in healthcare
Maryland HB 820 Enacted (Ch. 747, 2025) 2025-10-01 Utilization Review & Prior Auth Carriers, PBMs, and private review agents using AI for utilization review must ensure decisions based on individual clinical history; final decision by physician; quarterly adverse-decision reporting must indicate AI use.
Maryland HB883 In Committee Provider Disclosure Requires disclosure of AI use by healthcare providers
Maryland HB795 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
Maryland HB1119 Introduced 2024-06-01 Utilization Review & Prior Auth Regulates AI in healthcare
Maryland SB739 Introduced 2024-06-01 Utilization Review & Prior Auth Regulates AI in healthcare
Maryland HB1385 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Massachusetts H1210 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
Michigan HB 4536 In Committee Utilization Review & Prior Auth Regulates AI in healthcare
Michigan HB 4537 In Committee Utilization Review & Prior Auth Regulates AI in healthcare
Minnesota HF2500 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Minnesota SF3984 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Mississippi HB1717 Dead Clinical Decision Making Governs AI-assisted clinical decisions or coding
Nebraska LB 77 Enacted (2025) 2026-01-01 Utilization Review & Prior Auth AI output cannot be sole basis for evaluating medical necessity to deny/delay/modify health care services; AI use in utilization review must be disclosed to providers and enrollees.
New Hampshire HB 1406 Unknown Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
New Jersey S1029 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
New York A09149 Introduced 2024-04-08 Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
New York S03008 Passed Both Chambers Provider Disclosure Requires disclosure of AI use by healthcare providers
New York A03008 Introduced Provider Disclosure Requires disclosure of AI use by healthcare providers
New York A01456 Introduced 2025-03-10 Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
New York A09106 Unknown Mental Health Chatbots Regulates AI chatbots for mental health services
New York A03991 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
New York A08556 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
New York A09654 Introduced Provider Disclosure Requires disclosure of AI use by healthcare providers
New York A09190 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
New York S08484 Unknown Mental Health Chatbots Regulates AI chatbots for mental health services
New York S07896 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
New York A10005 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
Ohio SB164 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
Ohio HB579 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
Oklahoma HB3675 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Oklahoma SB2038 Introduced Provider Disclosure Requires disclosure of AI use by healthcare providers
Oklahoma HB4083 Introduced Mental Health Chatbots Regulates AI chatbots for mental health services
Oklahoma SB1967 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Oregon SB1546 Passed Both Chambers Provider Disclosure Requires disclosure of AI use by healthcare providers
Oregon HB4085 Dead Utilization Review & Prior Auth Regulates AI in healthcare
Rhode Island H7190 Introduced Provider Disclosure Requires disclosure of AI use by healthcare providers
Rhode Island S2010 Introduced Provider Disclosure Requires disclosure of AI use by healthcare providers
Rhode Island SB 2010 In Committee Provider Disclosure Requires disclosure of AI use by healthcare providers
South Carolina S0443 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
South Carolina S0920 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
South Carolina H5206 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Tennessee SB 2010 In Committee Utilization Review & Prior Auth Regulates AI in healthcare
Tennessee SB 1580 Unknown Mental Health Chatbots Regulates AI chatbots for mental health services
Tennessee HB1382 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Tennessee SB1261 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Tennessee SB 1261 In Committee Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Tennessee HB1866 Introduced Utilization Review & Prior Auth Regulates AI in healthcare
Texas SB 815 Enacted (89R, 2025) 2025-09-01 Utilization Review & Prior Auth Utilization review agent may not use AI as sole basis for adverse determination; only physician/licensed provider may determine medical necessity; TDI may audit AI use.
Texas HB2922 Introduced 2025-09-01 Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Texas HB4018 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Texas SB1411 Introduced Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Texas SB1822 In Committee Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Virginia SB269 In Committee Mental Health Chatbots Regulates AI chatbots for mental health services
Virginia SB586 In Committee 2026-01-01 Utilization Review & Prior Auth Regulates AI use in utilization review or prior authorization
Virginia HB669 Introduced Mental Health Chatbots Regulates AI chatbots for mental health services
Virginia HB668 Introduced Mental Health Chatbots Regulates AI chatbots for mental health services
Virginia SB 269 Unknown Mental Health Chatbots Regulates AI chatbots for mental health services
Washington SB 5395 Enacted (2026) 2026-06-11 Utilization Review & Prior Auth Prohibits AI as sole means to deny/delay/modify health care services; requires licensed provider review for medical necessity denials.

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Frequently Asked Questions

Which states regulate AI in healthcare utilization review?

As of 2026, 33 states have enacted or introduced legislation governing AI in healthcare. California's SB 1120 (eff. 2025) was among the first, requiring health plans to base AI-assisted utilization review decisions on individual clinical history. Texas SB 815 prohibits AI as sole basis for adverse determinations. Maryland, Nebraska, Alabama, Indiana, Arizona, and Washington have all enacted similar protections requiring human physician oversight.

Can AI deny health insurance claims?

A growing number of states prohibit health insurers from using AI as the sole basis to deny claims. Laws in California, Texas, Nebraska, and other states require that a licensed physician or healthcare professional make the final medical necessity determination. AI may assist the review process but cannot replace human clinical judgment for adverse decisions.

Do health plans need to disclose AI use?

Yes. Several state laws require health plans and insurers to disclose when AI or algorithms are used in utilization review and coverage decisions. Nebraska LB 77 requires disclosure to both providers and enrollees. Maryland HB 820 mandates quarterly reporting that indicates AI use in adverse decisions. Indiana HB 1271 requires disclosure of AI use in adverse determinations related to downcoding.