The bill S. 920 aims to amend the South Carolina Code of Laws by adding Article 25 to Chapter 71, Title 38, which establishes guidelines for health insurers using artificial intelligence (AI) in making prior authorization determinations. It defines key terms such as "artificial intelligence," "enrollee," and "prior authorization," and outlines the responsibilities of insurers when utilizing AI. Insurers must consider the enrollee's medical history and unique clinical circumstances, ensure that AI tools do not rely solely on group datasets, and certify annually to the Department of Insurance that their AI practices comply with fairness and non-discrimination standards.

Additionally, the bill mandates that insurers disclose the use of AI in utilization reviews to enrollees and provides for disciplinary actions if insurers violate these provisions. The Department of Insurance is empowered to investigate alleged violations and can impose corrective measures or disciplinary actions for repeat offenses. The act will take effect upon the Governor's approval.