The bill, titled S.B. No. 1411, introduces regulations regarding the use of artificial intelligence-based algorithms by health benefit plan issuers, utilization review agents, health care providers, and physicians in Texas. It amends the Insurance Code by adding Subchapter O, which includes definitions related to artificial intelligence, health benefit plans, and prohibited discrimination based on various factors such as race, gender, and vaccination status. The bill mandates that health benefit plan issuers disclose their use of artificial intelligence algorithms in their decision-making processes and requires them to submit these algorithms and associated training data to the relevant department for certification to minimize discrimination risks.

Additionally, the bill establishes oversight mechanisms, including the requirement for specialists to review clinical records before making adverse determinations based on artificial intelligence algorithms. It also introduces penalties for violations, including potential fines and license suspensions for health care providers. A public awareness campaign will be developed to educate the public about their rights concerning the use of artificial intelligence in health care. The provisions of the bill will take effect on September 1, 2025, and will apply to health benefit plans and medical services provided on or after January 1, 2026.

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